The French government will inject a total of 10.5 billion euros (US$14 billion) into the country’s six largest banks by the end of this year to help counter the effects of the global financial crisis, Finance Minister Christine Lagarde said on Monday.
The Finance Ministry said the capital injection was part of the French government’s 360 billion euro rescue plan aimed at unblocking credit markets and ensuring the country’s banks do not collapse.
“In exchange for this measure, they must commit to a target of increasing loans to the economy in order to guarantee a degree of financing in line with the needs of individuals, companies, local government and professionals,” Lagarde told reporters after a meeting with banking leaders.
The government has agreed to buy 3 billion euros in subordinated debt issues from Credit Agricole, 2.5 billion euros from BNP Paribas and 1.7 billion euros from Societe Generale, the Finance Ministry said in a statement.
The government has also agreed to buy 1.1 billion euros in unsubordinated debt from the Caisse d’Epargne.
The remainder will go to Credit Mutuel and Banque Populaire.
News emerged on Friday that the Caisse d’Epargne had lost 600 million euros trading derivatives amid the worldwide stock market collapse earlier this month. The top three executives at the bank resigned over the weekend.
A majority of French people do not believe the government’s rescue package of the country’s banking sector will work, an opinion poll published late on Monday showed.
Fifty-six percent of people questioned said the measures introduced by the government would “not really” or “not at all” restore lasting confidence among investors.
A further 59 percent of people said the measures would “not really” or “not at all” ensure a return to economic growth.
Meanwhile, 79 percent of French said that if the government “can loan US$40 billion to banks, it can afford to pay more to the poorest within society.”
Sixty-seven percent also concluded that the crisis proves the current liberal economic system has failed and should be changed.
A majority of people (59 percent) continue to oppose the government’s economic policy, although less than in preceding months.
The survey was commissioned by the international program Business Volunteers for the Arts (BVA), business daily Les Echos and France Inter radio station.
The poll was made up of a sample of responses given by 1,014 people, selected by a quota system, who were questioned over telephone on Friday and Saturday.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to