"I think we're going to be 100 billion euros in PGE. We are at 85 billion this morning "and" we are going to pass the 500,000 companies today ", declared the general manager of Bpifrance, Nicolas Dufourcq, on the antenna of BFM Business this Monday morning.
Nearly 500,000 companies have benefited from a state guaranteed loan (PGE) since the start of the crisis linked to the coronavirus epidemic. Launched at the end of March to respond to the cash flow difficulties of companies whose activity was stopped or slowed down, this system could theoretically go up to 300 billion euros.
"We are going to pass the 500,000 companies that benefit from a PGE in France. Compare this to the German PGE which only affects 55,000 companies. It is a huge success for the French banking system" - @NicolasDufourcq pic.twitter.com/CvTiXH1qJG
- BFM Business (@bfmbusiness) June 8, 2020"To compare with the PGE of our German friends which affects only 55,000 companies, so it is a huge success of the French banking system," noted the director general of the French public bank.
No conversion to equity
"To deploy 500,000 credits in two months, you have to imagine the energy expenditure in the 17,000 branches of all of the French mutual and banking networks that was necessary," he said. However, he ruled out the possibility that all of these loans could be converted into equity in the event that companies had difficulty in repaying them or in strengthening their capital.
"This debt must be repaid. Besides that, you have a certain number of SMEs which continue to lack equity ”, a problem which can be dealt with“ with pure equity, with convertible bonds or with very long loan tools ”, a continued Nicolas Dufourcq.
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