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Recovery plan: boosting companies' equity

2020-09-03T20:27:11.482Z


The urgency is to strengthen the capital of companies in order to prevent them from sinking and allow them to invest and hire.


No recovery of French companies without consolidation of their financial structure: on the strength of this observation, the State will devote 3 billion euros to strengthening the equity of very small and medium-sized enterprises, SMEs and mid-sized companies damaged by the crisis.

The repercussions of Covid-19 have pushed up the debt of French companies by 152 billion euros.

During the health crisis, many SMEs benefited from deferral of charges and loans guaranteed by the State (120 billion euros in total).

The urgency now is to strengthen their capital in order to prevent them from sinking and allow them to invest and hire.

Equity needs are estimated at between 10 and 20 billion euros.

"

The mobilization of institutional investors (banks, insurers, private equity funds) with the support of the State, could help meet these financing needs

", promises the government.

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Source: lefigaro

All news articles on 2020-09-03

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