In 2008, France adopted a series of urgent measures, to support financing of the economy, with the guarantee of the State in order to facilitate bank borrowing and to help banks make capital investments to shore up their capital levels. These measures had been authorized by the European Commission as they were State aid to enterprises. Given the improvement in the markets, these measures have been stopped during 2009. The SFEF (Société de financement de l’économie française, the agency set up in October 2008 to raise government-guaranteed funds on the capital markets and then lend them to banks) decided to end its activity in October 2009. Since 2008, the equivalent of EUR 77bn has been raised in support of banks. The State has earned EUR 1.4bn for providing a guarantee for SFEF issuance (source: SFEF). Overall, State budget revenues could reach EUR 2bn given the remuneration of securities held by the SPPE (Société de prise de participation de l’Etat, a dedicated vehicle set up to recapitalise credit institutions) and the fact that the banks have repaid almost all their debts.
During the year 2009, French financial legislation included several structural reforms as a consequence of the financial turmoil. These have been conducted in accordance with G20 orientations and European authorities. (…)
Lien du document : Synthèse France pour l’IIB (en Anglais)
Synthèse France pour l’IIB- VF (en Français)