Belgiums Dexia bank said it is putting an end to its diamond financing activities.

In a letter to customers, the bank said it planned to close on the 31st July 2006.

Market players in Antwerp estimate the banks exposure to the diamond trade to be between $120 -$250 million.

A Dexia spokes person, Ulrike Pommee, said the diamond sector makes up only 5% of the bank’s activities. She declined to comment on the banks exposure to the trade.

“Dexia Bank confirms its intention to put an end to its financing activities in the diamond sector. Given the specificities and the growing internationalization of the diamond sector, as well as its relatively modest size on this market, Dexia Bank considers that this activity hardly fits in its corporate banking strategy,” the bank said.

“As this represents a very limited scope of business, the end of this activity will only have a marginal impact on the results of Dexia."

She said the 18 member staff would be offered reallocation possibilities