French guarantee for CIF rescue may total 20 bln euros-source
PARIS, Sept 2 |
PARIS, Sept 2 (Reuters) - France's rescue of mortgage lender Credit Immobilier de France guarantees its assets up to a ceiling of more than 20 billion euros ($25.21 billion), a source familiar with the matter said on Sunday.
The source also said CIF, which the government on Saturday agreed to rescue after the lender was hit with a liquidity crisis, would stop making new loans.
"The bank cannot grant new loans, it's a condition of the state guarantee," the source told Reuters. "Without a buyer, the bank lacks the solid base which would allow it to access liquidity."
That suggests that the lender is likely to be wound down and that months-long efforts to find a buyer for it, which have so far proven fruitless, would be abandoned.
- Tweet this
- Share this
- Digg this