State ready to help PSA credit subsidiary

The “Figaro” said Tuesday that the government and several banks were studying a bailout Bank PSA Finance, the automotive credit subsidiary of the struggling car manufacturer.

It’s official. The government is considering a form of public support for Banque PSA Finance (BPF), a financial subsidiary of PSA Peugeot Citroën, said Economy Minister Pierre Moscovici on Wednesday (October 17th).
“We are looking for solutions that will allow this bank to be able to find financing by relying on the banking system and on a form, to be defined in common, of support from the state,” said the minister. a press conference on the future Public Investment Bank. “All this will be settled very quickly,” he said, adding that he had already “met the banks on this issue. ”

Tuesday night on its website, Le Figaro said that the government and several banks were studying a GMP rescue. According to the newspaper, which does not specify the nature of its sources, the Ministry of Finance and Treasury have been conducting for two weeks “intense negotiations” with “banks of the place” for such an operation. According to the newspaper, the rescue plan under discussion has three components.

To begin, the creditor banks of BPF would postpone according to an unspecified schedule repayment deadlines “on the equivalent of 4 billion euros of debts”. In addition, they would bring new credits to the subsidiary. The figure of 1.5 billion euros circulates, according to Le Figaro. Finally, the government would guarantee the new loans of BPF up to 4 billion euros- Ofm Canada 170.

RESCUE NECESSARY

According to the newspaper, these figures are likely to vary, but BPF and the government want to move quickly, especially so that the government guarantee can be integrated into the 2013 budget bill, which the examination has just begun in Parliament.

According to Le Figaro, this rescue is made necessary by the crisis that shakes the PSA group and the deterioration of the credit rating of the builder, which may drive up the borrowing rates of BPF. This subsidiary finances both Peugeot and Citroën dealerships and their customers’ purchases.

The newspaper adds that BPF is not strictly speaking a sick bank and is on the contrary “highly capitalized with regard to the uses of the sector”, but that it suffers from its status of the establishment of pure credit not collecting deposits. PSA is engaged in a plan of 8,000 job cuts and in the planned closure of its plant in Aulnay-sous-Bois, in the Paris region, in 2014.