The financing company of the French economy (SFEF), to issue on behalf of the cash needs of the French banks up to 265 billion, meeting investors today to launch a first broadcast Wednesday. Its CEO, Thierry Coste, considers that there is no competition with the emissions of the Treasury. For the time being, the key to sharing resources remains the one based on credit and assets. But, says Thierry Coste, in the future, "the Board of Directors of the SFEF will consider whether to adjust the fire".
You will issue the week next between 3 and 5 billion euros. Is this enough on the immediate need to credit agencies accredited in France
This operation is part of a programme of EUR 25 billion by March 2009. We are in the idea that this amount will be renewed for the same at the end of the first program.
Should this programme be devoted to repayment of the Caisse des Dépôts
The credit of the CDC is an operation of short term to expire end of 2008, a relay loan will be repaid by emissions which emerge between now and end of 2008.
The independent companies of specialty credits are under-represented in the key of the distribution of funding. A just title
Today, we did not have a large number of partners at the round table the constraints of rapid activation of security institutions. The key to distribution to date is credit customer and asset market share market share. In the future, the Board of Directors of the SFEF will consider whether to adjust the fire. But, in itself, the French plan goes beyond the perimeter of the only banks, since all credit institutions licensed in France can benefit from these funds.
The guarantee granted by the State French, cheaper than that of other European States, does not create distortion of competition between banks
The French plan has been adopted in the rules of the European Central Bank, which retain the principle of cost on the credit default swap 5-year between January 1, 2007 and August 31, 2008 for settlements with an increase of 50 basis points. In France, the SFEF loans to credit institutions with a collateral. As such, it is quite appropriate that the cost of the guarantee is decreased 30 basis points, in contrast to foreign plans. This system of collateral, moreover, is that same one used by the ECB. On the bottom especially, there is not subject to debate, since the Commission has approved last Friday the French plan.
The SFEF issues through an explicit State guarantee. Will not emissions cut off those of the State
France treasure (AFT) is strongly associated with the SFEF, including the Committee of emissions which it belongs. The Commissioner of the Government has a right of veto to ensure that the interests of the French State. Then, unlike foreign plans, issue via the SFEF avoids distortion between emissions issued by banking institutions with and without the State guarantee.
But if the price of the SFEF is higher, investors will have advantage to agree emissions rather than those of the Treasury
These are two related but not identical systems. It will be for investors to choose. There is sufficient liquidity for the two devices.