France on Thursday launched a bank rescue plan involving capital injection worth 10.5 billion euros (13.8 billion U.S. dollars) into the country's six largest banks in a bid to stem the financial crisis.
Economy Minister Christine Lagarde said the rescue plan, approved by the European Commission on Monday, is mainly to support bank lending to companies.
According to Lagarde, 3 billion euros (3.9 billion dollars) have been allocated to Credit Agricole, 2.55 billion euros (3.3 billion dollars) to BNP Paribas, 1.7 billion euros (2.2 billion dollars) to Societe Generale, 1.2 billion (1.5 billion dollars) to Credit Mutuel, 1.1 billion euros (1.4) to Caisses d'Epargne and 0.95 billion (1.2 billion dollars) to Banques Populaires.
The banks will have to increase their loans to individuals and companies by 3 to 4 percent by the end of 2009 in return for the capital injection, she said.
Last week, France announced a 26-billion-euro (33-billion-dollar) economic stimulus plan, including cash payments to the poor, a bigger rebate on new car purchases and a speeding up of high-cost public works projects.
The 15-nation euro zone officially entered recession in the third quarter of this year with its gross domestic product contracting by 0.2 percent in two consecutive quarters.
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