5 at 0 for the LDD and 85 to 70 for the Sara

It is not in the booklet. At a meeting in the Elysee Palace held yesterday morning, in the presence of the Prime Minister, François Fillon, Minister of economy, Christine Lagarde, with Hervé Novelli, Secretary of State to SMEs, the head of State arrested a plan of emergency assistance to SMEs. Contrary to what was the head of Government ("Les Echos" from October 1), it will be carried out no reallocation of surplus of the booklet A collection. The Elysee has certainly opted for a regulated savings mobilization, but speaking on sustainable development (LDD, ex-money) booklet and the popular savings booklet (Sara). From a political point of view, it seemed very difficult to receive a booklet, even though even it have nothing cost French investor. According to some sources, it would however be only a first step. The booklet could be used later to address the problem of liquidity of banks.

The general idea of the plan, officially at least, is not to solve the problem of liquidity of banks, but "to anticipate a likely drying out of the business credit", provides the Elysee. And more specifically to SMEs (less than 250 employees). The state mobilizes once again the Caisse des Dépôts and Consignations (CDC). At the time, in cost "practically nothing" in the national budget. Four measures "of immediate application" come into force "in the coming days" to inject EUR 22 billion in the economy. A figure in comparison to the 250 to 300 billion outstanding currently enjoyed by SMEs, which correspond to some 50 billion of new credits each year. "This plan takes the measure of the difficulties that can meet the SMEs in the current crisis", welcomed the Medef. For CGPME, she expressed "very satisfied" but maintains his application Wednesday, on the improvement of the relationship between banks and enterprises.

Pre-empt any sinking

First major provision, banks will have access to 17 billion euros of additional deposits through the collection of the LDD and the Sara. The rate of centralization to the CDC of these booklets will be lowered: 6.5 at 0 for the LDD and 85 to 70 for the Sara. Now, banks retain so all of the resources of the LDD and 30 of the Sara for an indefinite period, a point of step carried out "in 18 months." In return, they will have to commit to affect the amounts involved in business, through an agreement with the State. "It can do it now because the collection is very dynamic, of the order of 20 to 30 EUR billion greater than forecast early this year," notes the Elysee. "These are good measures that will allow banks to continue to fund the business despite difficult circumstances," welcomed a banker.

Second provision, the Caisse des Dépôts et Consignations will move from 4 to 6 billion euros line of funding that it accords to OSEO. In this way, the SME public bank may increase its loans capacity by 50. With regard to his (ex-Sofaris) guarantee activity, OSEO will see its budgetary allocations, which had already been strongly increased this year, move from 240 to 280 million euros in 2008 and in 2009. What is expected to increase by 2 billion the envelope of the guarantees granted to banks which provide loans to businesses, calculates the Elysee, whose objective is to "serve all requests to OSEO, without". In addition, still with OSEO, the Fund for the strengthening of the financial structure of companies, to present "in sleep", will be "reactivated" by a staffing of the public institution in the amount of EUR 70 million. This structure, whose purpose is to extend certain loans, would ensure additional outstanding 1 billion.

Finally, more technical measure, the Government will amend its draft order on the procedure for preservation of firms in difficulty. The text, which must appear in the next few weeks under the law of modernization of economy (LME), will facilitate the possibility of transforming bank debt into shares. After the rescue of Dexia Monday and assistance to developers on Wednesday, the Executive hopes to pre-empt any sinking of the French economy.