fbpx
Connect with us

Hi, what are you looking for?

UpNow MediaUpNow Media

Finance

France To “Temporarily” Nationalize Companies Hit by COVID-19

france to temporarily nationalize companies hit by covid 19 v2

If you like what you read, follow us on Facebook, Instagram and Twitter to get the latest updates.

The minister noted that the government would use all means, including recapitalization, to support enterprises affected by the coronavirus outbreak.

The French government is considering nationalizing, for a limited period of time, those companies suffering from the financial market turmoil due to the coronavirus epidemic, Finance Minister Bruno Le Maire said on Friday.

“It is simply a matter of having the state protect companies, for a limited period, by taking a stake or possibly by making a temporary nationalization,” Le Maire told France 24 and RFI radio.

“The state did not intend to manage commercial companies but had the responsibility to protect the strategic assets,” he added.

The minister noted that the government would use all means, including recapitalization, to support enterprises affected by coronavirus outbreak, notably those dealing with auto, transport and tourism businesses.

“It is extremely brutal for millions of entrepreneurs in our country. The recovery will be long, difficult and costly,” Le Maire said.

Working to mitigate the epidemic economic fallout, the French government was mobilizing 45 billion euros (US48.5 billion) to help companies stay afloat through the virus outbreak, consisting in large part of tax and payroll charge deferrals.

Among the other remedies, struggling domestic firms would benefit from state loans guarantees worth 300 billion euros, which could help commercial banks reduce potential exposure to loan losses.

“It is simply a matter of having the state protect companies, for a limited period, by taking a stake or possibly by making a temporary nationalization,” Le Maire told France 24 and RFI radio.

“The state did not intend to manage commercial companies but had the responsibility to protect the strategic assets,” he added.

The minister noted that the government would use all means, including recapitalization, to support enterprises affected by coronavirus outbreak, notably those dealing with auto, transport and tourism businesses.

“It is extremely brutal for millions of entrepreneurs in our country. The recovery will be long, difficult and costly,” Le Maire said.

Working to mitigate the epidemic economic fallout, the French government was mobilizing 45 billion euros (US48.5 billion) to help companies stay afloat through the virus outbreak, consisting in large part of tax and payroll charge deferrals.

Among the other remedies, struggling domestic firms would benefit from state loans guarantees worth 300 billion euros, which could help commercial banks reduce potential exposure to loan losses.

If you like what you read, follow us on Facebook, Instagram and Twitter to get the latest updates.

Related Articles

Finance

Global shares rally with oil to highs last seen in mid-April as data from an early-stage trial for a coronavirus vaccine lifted hopes of...

Worldwide

Post Views: 44 If you like what you read, follow us on Facebook, Instagram and Twitter to get the latest updates. France has recorded...

Worldwide

The bipartisan initiative “Vote Early Day 2020” is ramping up its efforts to enlist companies to encourage people to vote by absentee ballots or...

Finance

New investors who sense a generational-buying moment but do not have much background in the equity space are flooding the markets with a lack...

Advertisement