France moves to guarantee banks
Oct 12 2008 14:53
Paris - The French government will on Monday propose a law designed to offer a state guarantee for banks endangered by the global financial crisis, a ruling party deputy said on Sunday.
Gilles Carrez, a senior member of the parliamentary finance committee, told AFP that the law would be unveiled at an emergency cabinet meeting called by President Nicolas Sarkozy in response to the economic meltdown.
"We need a law to put in place a state guarantee and an organ that will be charged with raising funds to help banks deal with their need to recapitalise," Carrez explained. Sarkozy's office confirmed the cabinet meeting.
A second ruling party parliamentary source said that the law would be brought to a parliamentary vote "sometime during the week."
Sarkozy is due to address the nation in a televised speech on Monday that will follow the emergency cabinet meeting.
On Sunday, he was to hold crisis talks with European leaders to find a way out of the financial crisis.
- AFP
