3/4, 9:29 AM (Source: TeleTrader)
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France to support firms with up to €20 billion from private investors

The European Commission stated on Thursday that it has approved a French program that will provide up to €20 billion in long-term funding to companies affected by the coronavirus pandemic. Under the scheme, private investors will acquire "participating loans distributed by commercial banks as well as subordinated bonds, thereby improving their capital position." The French state guarantee will cover up to 30% of the loans and bonds portfolio in order to limit risks.

"This French guarantee scheme will support small, medium and mid-cap businesses affected by the coronavirus outbreak and will help them continue their activities despite the current economic uncertainty. By mobilizing up to €20 billion support from private investors in the form of participating loans and subordinated debt, the guarantee scheme will help mitigate the economic impact of the coronavirus outbreak by crowding in private investments," explained Commission Executive Vice-President Margrethe Vestager.

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