Sarkozy vows to pressure French banks on loans

10th February 2010, Comments 0 comments

Sarkozy says he has asked state authorities to open a line of credit worth EUR 100 million to boost small- and medium-sized businesses in rural areas.

Moree – France's President Nicolas Sarkozy on Tuesday said he would pressure banks to increase lending to struggling French businesses, accusing them of putting up "unacceptable" barriers to loans.

"I will be obliged to review the banks because I am worried by what is going on at the moment," he said in a public speech in the village of Moree.

"There is a financing problem for businesses, which are signalling it to me all over the country, and that we cannot accept."

Sarkozy said he had asked state authorities to open a line of credit worth EUR 100 million to boost small- and medium-sized businesses in rural areas.

He blamed banks in part for bringing on the financial crisis and cited rescue funds that his government made available to them last year.

"We saved them. We protected your savings," he said.

"But I will not go from one excess, where they were financing anything, to a situation where we turn the screw on businesses that need thousands of euros of financing and cause job losses. That is unacceptable," he added.

"I will have this meeting with the banks."

AFP / Expatica

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