Open

Coming up

Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

Booing of Juppé by Sarkozy supporters underlines UMP divisions

Read more

BUSINESS DAILY

Hollande’s industrial policy under scrutiny during Florange visit

Read more

WEB NEWS

Concerns grow as hobby drone use increases

Read more

WEB NEWS

Buffalo residents share stunning images of the snowstorm

Read more

AFRICA NEWS

Senegalese photographer's flashbacks to Africans throughout history

Read more

MEDIAWATCH

Hollande photographed with Julie Gayet on Elysée Palace balcony

Read more

REVISITED

Is Beirut still haunted by ghosts of the civil war?

Read more

THE WORLD THIS WEEK

Band Aid 30 - Hit or Miss? Bob Geldof in Hot Water over Ebola Single

Read more

THE WORLD THIS WEEK

Deal or No Deal with Iran? Home Stretch to Reach Historic Agreement

Read more

France to create new programme to aid banks

Latest update : 2008-10-13

Following measures taken by European governments to protect banks from the financial crisis, French PM Francois Fillon announced Wednesday that the government would create a new "legal structure" to save failing banks.

France's Prime Minister Francois Fillon asked lawmakers Wednesday to give legal backing to his government's promise to step in rapidly to support failing banks with cash bail-outs.
   
France's new programme is the latest in a patchwork of emergency measures taken by European governments to protect banks from the financial meltdown, ranging from deposit guarantees to full nationalisations.
   
Addressing a parliamentary debate on the banking crisis, Fillon said France had already stepped in to partly buy out the failing Franco-Belgian bank Dexia as an emergency measure but wanted a "legal structure" for future rescues.
   
"In order that it can have all the necessary capital to hand for any future interventions that prove necessary, the government will ask parliament to vote to attach an explicit state guarantee to the finance bill," he said.
   
"We wanted to create the conditions for confidence to return to the banking system and ensure that banks start lending to each other once again," he said.
   
President Nicolas Sarkozy has pledged that no French bank will be allowed to collapse amid the recent financial crisis, despite a squeeze on liquidity that has seen interbank lending grind to a halt and sent shares into a tailspin.

Date created : 2008-10-08

COMMENT(S)