French PM says state will help banks

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Fillon states that French banks are at risk due to the financial crisis, but the government will help prevent bankruptcies.

1 October 2008
PARIS -- French Prime Minister Francois Fillon warned in an interview to appear Wednesday that the country's banks are at risk due to the global financial crisis, which he compared to the Great Depression.
Fillon, however, said in the interview with Les Echos business newspaper that the government would not allow any banks to fail.
"French banks are not insulated from difficulties if a large European bank collapses", he said. "For that reason, we are assuring the French people of the state's absolute guarantee of the French banking system".
The prime minister said "we are totally mobilised... We will not rule out any solution... There will be no bankruptcies".
Fillon said the government could take action in the same way it did with Dexia, which became the latest European bank to require a bailout Tuesday, with Belgium, France and Luxembourg adding EUR 6.4 billion into the company.
Dexia's troubles are part of the growing global financial crisis, with the US government trying to pass a USD 700 billion rescue package to limit the trouble.
"The crisis we are facing is serious because we have a financial crisis equivalent to that of 1929 that is in addition to an oil crisis similar to the one in 1973", Fillon said.

[AFP / Expatica]


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