French PM tells banks to 'significantly' lower bonuses

2nd November 2011, Comments 0 comments

French Prime Minister Francois Fillon told bank chiefs on Wednesday to limit significantly salary bonuses this year because of the European financial crisis.

"Given the current context, the amounts that will be given for 2011 should be significantly lower," he said during a meeting with the heads of the country's leading banks.

"I have asked the governor of the Bank of France to be particularly vigilant on this point, by verifying in advance the amount of the packages foreseen and by using, if necessary, the powers at his disposal," Fillon said.

"The recapitalisation of the banks' proper funds must be their absolute priority," he said.

European leaders agreed a deal with banks at a summit last month to address the eurozone's debt crisis by seeing them write down the Greek sovereign debt they hold by about 100 billion euros ($137 billion).

Another component of the plan sees banks expected to raise their core capital ratio -- a key measure of financial stability -- to nine percent of their overall assets.

Fillon said the deal "remains our road map and should be implemented as soon as possible", despite Greek Prime Minister George Papandreou's surprise announcement that he would put the country's bailout deal to a referendum.

© 2011 AFP

0 Comments To This Article