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Paris - France has called for calm as the share prices of top French banks fell on Wednesday, after ratings agency Moody’s said it might downgrade them because of exposure to Greece’s debt-stricken economy.
“French banks are exposed to Greece...(but) they are less exposed than the German banking sector, for instance. On all these subjects we need to stay calm,” Secretary of State for European Affairs Laurent Wauquiez said on French radio.
Wauquiez also reiterated France’s opposition to any restructuring of Greek debt that would count as a default.
French banks are among the most exposed to Greek sovereign debt in Europe and hold €9bn worth, making them vulnerable to a potential restructuring as policymakers thrash out a new rescue plan for Greece.
Moody’s cited the impact of a possible Greek default or restructuring as part of the reason it might cut the ratings of France’s top three listed banks - BNP Paribas, Credit Agricole and Societe Generale.
Asked whether the private sector should participate in a fresh rescue package for Greece, Wauquiez said: “If (Greek debt) restructuring means that the country does not repay its debts, then this is not part of the French government’s vocabulary.”
Eurozone ministers failed to reach agreement on Tuesday on how private holders of Greek debt should share the costs of a new bailout, putting the onus on the leaders of Germany and France to forge a deal later this week.
BNP shares were down 2.0% in morning trade, while Credit Agricole was down 1.4% and SocGen was 1.7% lower. All three were underperforming the STOXX Europe 600 bank index, down 1.1%.
Credit Agricole declined to comment on the Moody’s report, while BNP and SocGen were not available for comment. The French Banking Federation (FBF) declined to comment.
FBF head Francois Perol, told Reuters on Tuesday that banks had not yet been approached on the topic of a private sector contribution, but shared the European Central Bank’s (ECB's) concerns over a potential debt restructuring.
ECB officials have consistently ruled out any scheme that is not strictly voluntary, fearing it would be ruled a default by ratings agencies and cause a contagion effect to other eurozone high debtor nations.
“French banks are exposed to Greece...(but) they are less exposed than the German banking sector, for instance. On all these subjects we need to stay calm,” Secretary of State for European Affairs Laurent Wauquiez said on French radio.
Wauquiez also reiterated France’s opposition to any restructuring of Greek debt that would count as a default.
French banks are among the most exposed to Greek sovereign debt in Europe and hold €9bn worth, making them vulnerable to a potential restructuring as policymakers thrash out a new rescue plan for Greece.
Moody’s cited the impact of a possible Greek default or restructuring as part of the reason it might cut the ratings of France’s top three listed banks - BNP Paribas, Credit Agricole and Societe Generale.
Asked whether the private sector should participate in a fresh rescue package for Greece, Wauquiez said: “If (Greek debt) restructuring means that the country does not repay its debts, then this is not part of the French government’s vocabulary.”
Eurozone ministers failed to reach agreement on Tuesday on how private holders of Greek debt should share the costs of a new bailout, putting the onus on the leaders of Germany and France to forge a deal later this week.
BNP shares were down 2.0% in morning trade, while Credit Agricole was down 1.4% and SocGen was 1.7% lower. All three were underperforming the STOXX Europe 600 bank index, down 1.1%.
Credit Agricole declined to comment on the Moody’s report, while BNP and SocGen were not available for comment. The French Banking Federation (FBF) declined to comment.
FBF head Francois Perol, told Reuters on Tuesday that banks had not yet been approached on the topic of a private sector contribution, but shared the European Central Bank’s (ECB's) concerns over a potential debt restructuring.
ECB officials have consistently ruled out any scheme that is not strictly voluntary, fearing it would be ruled a default by ratings agencies and cause a contagion effect to other eurozone high debtor nations.
