French President Nicolas Sarkozy was to meet with the heads of French banks and insurance companies later Tuesday as French shares tumbled for a second consecutive day in the wake of the refusal of the US Congress to approve a finance bail-out.

The aim of the meeting at the Elysee Palace is to "review the situation of the financial institutions as well as the availability of credit to households and companies," Sarkozy's office said Monday, but the defeat in the House of Representatives of the plan to rescue the US finance sector will add urgency to the talks.

Last week, Sarkozy had vowed that the French state would come to the aid of any financial institution at risk of failing, to ensure that depositors did not lose any of their savings.

Late Monday, the governments of France, Belgium and Luxembourg agreed in principle to inject 6.4 billion euros (9.2 billion dollars) into the struggling Franco-Belgian financial services group Dexia.

"All the necessary measures will be taken to preserve the interests of Dexia's depositors," Belgian Prime Minister Yves Leterme said.

Dexia's share price fell by 28.50 per cent on the Paris Bourse on Monday, to 7.20 euros, its lowest-ever level. Trading in Dexia shares was suspended on Tuesday as stocks on the Paris Bourse fell for a second straight day.

The Bourse's blue-chip CAC 40 plunged by nearly 3 per cent shortly after opening before staging a mild recovery to stand at 3,892.50, down 1.54 per cent on the day.

Declining issues were led by insurance giant Axa, down 5.15 per cent to 20,44 euros. French banks BNP Paribas and Credit Agricole lost nearly 4 per cent each, to 63.00 and 12.50 euros, respectively.