View from City Road: Privatisation a la francaise
Wednesday 23 March 1994
All may be revealed along with Credit Lyonnais's 1993 results, out tomorrow, which are likely to show hefty losses after a leap in provisions for bad loans.
Rapid expansion of the bank's loan book under ex-chairman Jean- Yves Harberer led it into all the accident black spot borrowers of recent times, including Olympia & York, MGM studios and Sasea, the bankrupt Swiss financial group.
The fashionable intelligence is that the government will inject Fr4bn ( pounds 470m), while between Fr30m and Fr40m of real estate loans will be put into a new shell company.
Clearly French privatisation, which brought in Fr50bn in 1993 and will bring in much more in 1994, is emerging as a means of raising funds partly to prop up ailing state-owned companies like Air France, which is asking for Fr20bn of help, and Credit Lyonnais prior to their eventual privatisation.
This is rational enough since neither company, as currently structured, is remotely acceptable to private investors. But nothing will infuriate non-state owned competitors - including many in the City - more, particularly as the French taxpayer seems set to pay for necessary restructuring before privatisation.
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Axe wielding man shot dead after attacking four New York policemen on busy street
- 3 Watch what happened when food critics were unknowingly served McDonald's
- 4 Jimmy Carr's Oscar Pistorius joke goes a bit too far at the Q Awards
- 5 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
Renee Zellweger on plastic surgery rumours: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Axe wielding man shot dead after attacking four New York policemen on busy street
This 'woman calls police to order pizza' story isn't going where you're expecting
McKamey Manor: This 'extreme' haunted house is the stuff of nightmares
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
London bus driver 'kicks gay couple off for kissing'
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...