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France reveals bank recapitalisation details

 France reveals bank recapitalisation details
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The French state has announced plans to lend 10.5 billion euros to the country’s top six banks before the end of the year.

The money will prop up their capital reserves and will be lent in relation to their size, according to Finance Minister Christine Lagarde, who said the government was ready to make the same amount available again in 2009.

President Nicolas Sarkozy said last week the government had earmarked 360 billion euros as part of an international effort to help banks survive the worst financial crisis since the Great Depression.

The money will come from a 40 billion euro recapitalisation fund that was part of that plan.

The loans come with conditions attached, including lending targets, a higher interest rate and rules of conduct regarding director remuneration.

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