The president of the French Banking Federation (FBF) Philippe Brassac said on Thursday that 4% of state-guaranteed loans (PGE) were encountering repayment difficulties, mainly from small businesses.
Between March 2020 and June 2022, nearly 700,000 PGEs were granted by the banks for a total amount exceeding 143 billion euros. The purpose of this measure was to replenish the cash flow of companies, on advantageous financial terms, to help them cope with the economic consequences of the health crisis.
About 25% of the amounts, in capital, have been repaid, affirmed Philippe Brassac, in an interview given to BFM Business.
Only 2% (of the number of loans granted, editor’s note) give rise to a request for state intervention, via the BPI (Public Investment Bank, editor’s note) concerning the state guarantee, according to him.
Among the 4% of loans experiencing repayment difficulties, many are VSEs and SMEs, said Mr. Brassac.
In the event of default by the borrower, the State guarantees the banks a 90% refund for VSEs, SMEs and ETIs.
up 160 € premium openness thanks to our comparison of online banks
From 2021, 45% of PGEs began to be reimbursed, and a large wave of companies were to start paying their chances from the spring of 2022 (more than 200,000 PGEs), the national credit ombudsman at the Banque de France told AFP. France, Fredric Visnovsky.