Page last updated at 19:28 GMT, Monday, 20 October 2008 20:28 UK

France unveils bank rescue plan

Man walks past BNP Paribas cash mahines
The banks will collectively receive 10.5bn euros

The French government is to inject 10.5bn euros ($14bn; 8.2bn) into the country's six largest banks.

The announcement was made by Finance Minister Christine Lagarde and follows similar moves by other governments across Europe.

Among the beneficiaries, France's largest bank, Credit Agricole, is to get 3bn euros, while BNP Paribas will receive 2.55bn euros.

The move is aimed both at restoring confidence and liquidity to the banks.

'Finance correctly'

Among the other banks, Credit Mutuel will get 1.2bn euros, Caisse d'Epargne 1.1bn euros, and Banque Populaire 950m euros.

Ms Lagarde said the move was to ensure banks are "able to finance the economy correctly".

She added that the banks simply needed to increase their equity capital in order to give more loans to companies and individuals.

President Nicolas Sarkozy has vowed that no French bank will be allowed to collapse and that savers will not lose "a single euro".

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