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France unveils bank rescue plan | France unveils bank rescue plan |
(20 minutes later) | |
The French government is to inject 10.5bn euros ($14bn; £8.2bn) into the country's six largest banks. | The French government is to inject 10.5bn euros ($14bn; £8.2bn) into the country's six largest banks. |
The announcement was made by Finance Minister Christine Lagarde and follows similar moves by other governments across Europe. | The announcement was made by Finance Minister Christine Lagarde and follows similar moves by other governments across Europe. |
Among the beneficiaries, France's largest bank, Credit Agricole, is to get 3bn euros, while BNP Paribas will receive 2.55bn euros. | Among the beneficiaries, France's largest bank, Credit Agricole, is to get 3bn euros, while BNP Paribas will receive 2.55bn euros. |
The move is aimed both at restoring confidence and liquidity to the banks. | The move is aimed both at restoring confidence and liquidity to the banks. |
'Finance correctly' | |
Among the other banks, Credit Mutuel will get 1.2bn euros, Caisse d'Epargne 1.1bn euros, and Banque Populaire 950m euros. | Among the other banks, Credit Mutuel will get 1.2bn euros, Caisse d'Epargne 1.1bn euros, and Banque Populaire 950m euros. |
Ms Lagarde said the move was to ensure banks are "able to finance the economy correctly". | Ms Lagarde said the move was to ensure banks are "able to finance the economy correctly". |
She added that the banks simply needed to increase their equity capital in order to give more loans to companies and individuals. | |
President Nicolas Sarkozy has vowed that no French bank will be allowed to collapse and that savers will not lose "a single euro". | President Nicolas Sarkozy has vowed that no French bank will be allowed to collapse and that savers will not lose "a single euro". |