French firms facing a cash crunch will be able to get access to low-interest loans from Wednesday to help tide them over during the coronavirus crisis, said the head of the nation's banking association.
As the French state has provided credit guarantees, "we will offer supplementary loans to all firms," said the head of the French Banking Federation, Frederic Oudea, in an interview broadcast Monday on the website of the daily Le Parisien.
"Every company can ask their bank for a loan up to an amount equal to three months of revenues," added Oudea, who is also head of French bank Societe Generale. He said the loans, which will carry an interest rate of 0.25 percent according to Le Parisien, will be available from Wednesday.
France has ordered many businesses to close and for most people to stay home in order to slow the spread of the coronavirus. The 300 billion euros in credit guarantees are one measure the French government has taken to ensure that companies are able to survive the crisis, and officials have signalled they are ready to take additional action to ensure firms don't fail.
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