France credit 'no longer a problem': central bank

19th January 2010, Comments 0 comments

Companies that are in a healthy financial state no longer have any troubles refinancing.

Paris – Companies that are in a healthy financial state no longer have any problems getting loans in France, the governor of the central bank said in an interview on French television channel LCI on Monday.

"Credit in normal cases is no longer a problem. It's companies that are in trouble, essentially, that have trouble refinancing," Christian Noyer said.

Asked about figures showing a decline in the volume of credit last year, Noyer said that this was "more a problem of demand than supply".

"It's particularly small- and medium-sized enterprises that have seen a growth in credit, while bigger companies have seen a fall in credit and it's falling because it's being replaced by issuing bonds and shares," he added.

The latest figures from the central bank show that the volume of credit to companies declined by 2.3 percent in November on a 12-month comparison.

The volume of credit to the non-financial private sector rose by 1.0 percent over the same period -- still far from a 3-4 percent government target.

AFP / Expatica

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