The extent of the loans guaranteed by the State had been taken by the government to allow companies to weather the crisis caused by the coronavirus in spite of the fall, or the total cessation of their activity due to confinement. So far, nearly 500, 000 businesses have benefited from a loan guaranteed by the State (PGE) for a total of 85 billion euros, as reported this Monday, June 8, the general director of Bpifrance Nicolas Dufourcq.

also Read Jobs : the spectre of a lost generation

” I think we’re going to be 100 billion euros of PGE. It is 85 billion this morning ” and “we will pass the 500,000 companies today,” said Mr. Dufourcq, airing on BFM Business. Launched at the end of march, at the beginning of the containment, to address the liquidity problems of enterprises whose activity was stopped or slowed, the device of EMP can theoretically go up to 300 billion euros. “To compare to the EMP of our German friends that only 55 000 companies, so it is a huge success of the French banking system “, according to the director general of the bank of French public.

“there obviously will be loss”

“To deploy 500 000 credits in two months, it is necessary to imagine the energy expenditure in the 17 000 branches of all cooperative networks and French bank that was necessary,” he noted. Nicolas Dufourcq, has ruled out the possibility that all of these loans were converted into equity in the case where the firms would struggle to pay it back or to strengthen their capital. “We can’t convert 100 billion euros in equity (capital), he said. “There will, of course, the loss ratio “, he warned, adding that” historically, in 2009, it was still much lower than expected, so the worst is never sure.”

also Read ” The entrepreneurs of the digital want to change the world ? Skimp ! “

” This debt must be repaid. Beside of that, you have a number of SMES who continue to lack of own funds “, a problem that can be treated with ” equity pure, with convertible bonds or bonds with tools ready very long, detailed Nicolas Dufourcq, citing for the latter case, the credits of 12 years with a grace of 3 years, granted in the tourism sector.

writing will advise you

Loans guaranteed by the State : “When the banker says no, it is often legitimate.” Etienne Gernelle – The sovietisation creeping of the French economy