A new partnership with the State contract

Despite the gradual return of growth, the business financing remains problematic in France, and the latest statistics on lending to the private sector are unambiguous: we are witnessing a historic decline in the stock fall in 2009 by 20, or more than 100 billion euros...

Spiralling of deposits of balance observed since the first quarter 2009 merely confirms that the business credit remains completely frozen in France. Despite the numerous support measures implemented by the Government, obtaining a loan is the obstacle course when it is not impossible... It must be understood that the banks are now the bulk of their profits through trading and bond markets without taking any risk, so lend to businesses is to risk more to earn less!

On the banks, the aversion of the committees of credit risk is such, and trust in the word of the entrepreneurs so low, it is quite unnecessary to seek new loans, unless you have sufficient safeguards to ensure zero risk.

For their part, the entrepreneurs, more and more aware of the futility of present records which will put many months to receive a response - the more often negative - do even more sentencing asking for new lines of financing. The credit crisis, initially a liquidity crisis, has today become a crisis of confidence, with bankers and businessmen who do agree more no credit, in every sense of the term!

This situation leads us to imagine new measures that would complement the significant measures already taken by the Government, but insufficient in the State.

The transparency necessary to restore confidence.

Must be able to measure the reality of actually provided credit: mixing the renewal of existing and new for all types of business in a same calculation, it is not possible to determine what is really new stock. It must also take into account the credits times. It is therefore necessary for the banks that they communicate transparently the real figures outstanding amounts and deadlines for the granting of credits.

A new partnership with the State contract.

In a context of financial crisis, banks no longer willing to take risk. A new line of credit provides three constraints for a bank. It must find its refinancing at a lower cost to generate profits. It must compensate new funding with its own funds to ensure the risk of default. It must lend funds will result it in less obligations and trading.

Solvency ratios which protect the banks against the risk of bankruptcy are more they grant credit, and more are put at risk. Lead banks to reopen the valves of the credit, to give them oxygen! Hence the idea that a new contract between the banks and the State: If the banks are willing to put in place a total transparency on the stock of credits, the Government could encourage loans to banks for a significant amount but at a very reduced rate (1 to 1.5).

The requirement in return would be the massive opening of credit lines to companies the most creative of wealth and employment, namely small and medium-sized companies (ETI). With indicators of transparency, the Government will be able to control that the funds are actually lent to those who need...

Really out of this crisis and create conditions for sustainable French growth, to identify new ways for our companies, and therefore employment. This means the ability to invent new relationship between public authorities, banks and businesses, based on trust.

Completeness of this point of view on lesechos.fr/lecercle