'No bailout plan' for French banks

26 September 2011

There is no bailout plan in place to help rescue troubled French banks, it has been claimed.

The nation's finance ministry has issued a formal denial of suggestions reported in the newspaper Journal du Dimanche (JDD) that the country is gearing up for a €10 billion to €15 billion recapitalization package.

According to the news provider, the state made such an offer to officials from BNP Paribas, Credit Agricole, BPCE, Credit Mutuel and Societe Generale.

The weekly claimed, however, that the latter - which has a history dating back to 1864 and the authorization decree signed by Napoleon III - had rejected the proposals.

In an interview with JDD, the central bank governor Christian Noyer said: "French banks have a sufficient capital base compared to other European banks and they are making profits."

The finance ministry noted talks with the lenders centred only on the state of their health as opposed to any bailout offer.

By Tony Aynsley

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