Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure FR-2020-10/570 – Updated – measures in France
|Country||France , applies nationwide|
|Time period||Temporary, 01 March 2020 – 30 June 2022|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Frédéric Turlan (IRshare) and Eurofound|
|Measure added||13 April 2020 (updated 30 May 2022)|
The government has implemented an exceptional guarantee scheme to support bank financing for businesses, amounting to €300 billion. Until 31 December, companies of all sizes, whatever their legal form, will be able to apply to their usual bank for a State-guaranteed loan to support their cash flow. This loan may represent up to 3 months of 2019 turnover, or two years of payroll for innovative companies or companies created since 1 January 2019. No repayment will be required in the first year. The company may choose to amortize the loan over a maximum of five years.
The loans covered by the guarantee must comply with specifications defined by order of the Minister of the Economy. They include a minimum twelve-month grace period and a clause giving the borrower the option, at the end of the first year, to amortize them over an additional period of up to five years.
The banks undertake to examine all applications submitted to them and to give a prompt response. They undertake to distribute State-guaranteed loans on a massive scale at cost price to relieve the cash flow of businesses and professionals without delay.
Nevertheless, all companies, particularly the largest, which do not meet their obligations in terms of payment deadlines, will not have access to this State guarantee for their bank loans.
In addition, French banks have undertaken to defer repayment of business loans for up to six months at no charge.
The following updates to this measure have been made after it came into effect.
|08 November 2021||
The state-guaranteed loan (PGE) is extended from 1 January 2022 to 30 June 2022 following the European Commission's decision of 18 November 2021.
Following the announcements of the Minister for the Economy, Finance and Recovery, it has also been agreed with the French Banking Federation that all companies that wish to do so, regardless of their activity and size, will be entitled to a deferment of an additional year to start repaying their state-guaranteed loan (PGE).
A business with an PGE in place in April 2020, which would not be able to start repaying it in April 2021, will be able to apply for a one-year deferral and start repaying it from April 2022. All businesses are encouraged to visit their bank advisor to decide on their PGE repayment plan.
In addition, in order to support VSEs in a situation of severe cash flow pressure, they will be able to benefit from an extension of the repayment period of their PGE from 6 to 10 years. After contacting their bank, these businesses should contact the Banque de France's Credit Mediation Service or the departmental crisis exit advisors.
On 11 April 2020, 200,000 applications had already arrived in the banking networks. And 150,000 files have already been processed, for a total amount of €22 billion, according to Nicolas Dufourcq, director of BPI France, the French public investment bank.
On 26 March 2021, 664,279 files have already been processed, for a total amount of €138 billion.
On 7 May 2021, 673,139 files have already been processed, for a total amount of €139.5 billion.
On 31 December 2021, 693,398 files have already been processed, for a total amount of €141.562 billion.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
No involvement of social partners.
This instrument seems to reach a consensus among social partners.
Eurofound (2020), State-guaranteed treasury loans, measure FR-2020-10/570 (measures in France), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FR-2020-10_570.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.