“I would rather have billions of debts than bankruptcies,” said the Minister of Economy in particular.
Bruno Le Maire is on the offensive. Face to the consequences of the epidemic of the new coronavirus, the Minister of the Economy made several announcements on France 2. While France has announced a drop of around 6% in its gross domestic product in the first quarter, the government says it is ready to massively support businesses. “I prefer to have billions of debts than bankruptcies. The best way to repay these debts is to get back to work, revive economic activity, as soon as we can”, explained the Minister of Economy.
On improving the ceiling of the solidarity fund
“We are working on improving the solidarity fund, which is capped at 2,000 euros, to integrate the rents of a number of threatened businesses. And to take charge of those who are in a situation of judicial recovery”, a first explained Bruno Le Maire. “Rents, for example from shops and restaurants that can no longer pay, could be taken care of as part of solidarity funds for a certain number of particularly threatened businesses.” Then revived by Anne-Sophie Lapix, the Minister of the Economy raised the possibility of raising the ceiling of the solidarity fund to 5,000 euros.
Cancellation of charges by companies
Asked by a florist from the Oise department about the possibility of a cancellation of charges from companies, Bruno Le Maire left an open door: “We postpone for the months of March and April, the social and fiscal charges. This postponement is automatic, all the companies which request it obtain it. But I am perfectly aware that certain companies will not be able to reimburse. If the threat, it is the disappearance of the business, in this case, we will cancel the postponement of social and fiscal charges. In this case, the criterion will be: ‘is it bankruptcy that threatens this company ?'”
Support for Air France
Air France will benefit from a “massive support” on the part of the State facing the coronavirus crisis, assured Bruno Le Maire. “We want to preserve this airline which is a French industrial flagship at all costs”, he assured. The minister had indicated earlier that France stood ready to replenish its capital as well as that of the Renault group.
The role played by the banks
Bruno Le Maire answered questions from internet users at franceinfo. On bank charges, he called on the banks to show solidarity: “The banks, they have to support. They have to make the necessary effort, especially for those who are most affectedhe asked. We could take the example of banks that do not charge interest when there is a carryover. “
On the risk of bankruptcy of banking establishments
Bruno Le Maire was also asked about a risk of bankruptcy of the banks. “No, today is not a financial crisis, it is a crisis on the real economy. The French financial system is solid.”
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