HomeNewsVideos

COVID-19: French government mulls asking banks to contribute to Air France bailout

20 April 2020 12:23

PARIS - The French government is considering calling on banks to take part in a bailout of France’s flag carrier Air France, said Economy and Finance Minister Bruno Le Maire.

The government has budgeted €20 billion to recapitalise or, if necessary, nationalise major French companies struggling with the coronavirus (COVID-19) crisis, including Air France.

“You say that Air France [needs] €7 billion, we can very well imagine that the effort is shared between the state and the banks. There’s nothing that says that the state has to provide capital to Air France all alone,” said Mr Le Maire in an interview with BFM TV, Friday (17/4).

According to La Tribune, Air France’s parent company Air France-KLM SA is currently seeking up to €10 billion in state-backed loans with nearly €8 billion allocated for Air France. The airline group also owns Dutch flag carrier KLM.

As reported by Reuters, the €20 billion bailout funds are part of a €110 billion economic rescue package, which includes tax and payroll charge deferrals and funding for state-subsidised furloughs.

It also includes €1 billion euros that the government can directly loan to companies that are unable to get bank loans on condition that they restructure. (MS)

© 2024 - IDN Financials - All Rights Reserved.