French banks are taking the front line to help French companies get through the coronavirus crisis. As of Wednesday, they will offer additional loans. The amount of these loans may represent a maximum of three months of turnover, said Monday the French Banking Federation (FBF).
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These loans, most of which are guaranteed by the State, will benefit from very advantageous conditions: a rate of 0.25%. Last week, Emmanuel Macron, the President of the Republic, announced that the state would guarantee 300 billion euros in loans granted by the banks to companies affected by the coronavirus.
The state and the European Central Bank (ECB) have also stepped up measures in recent weeks to allow banks to support businesses and prevent them from doing
bankruptcy.
Thanks to an exceptional system of state guarantees, we will offer additional bank loans for all businesses
Frédéric Oudéa, head of the Société Générale group"Thanks to an exceptional system of state guarantees, we will offer additional bank loans for all companies," said Frédéric Oudéa, head of the Société Générale group and president of the French Banking Federation, in an interview broadcast on Monday by The Parisian . "We will disseminate information and train our networks in the next two days, and it will be operational by Wednesday," added the banker.
Another boost, the boss of a company in difficulty because of the pandemic, to the point of forcing him to draw the curtain, will have nothing to repay before a year if he decides to borrow under this program. "At the end of these twelve months, he will have to decide: either immediate repayment, or gradually by extending his loan up to five more years", explains Frédéric Oudéa.
