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French PM's appeal to banks ahead of G20

Wednesday, November 02, 2011 - 02:05

Nov. 2 - French Prime Minister Francois Fillon urges the nation's banks to show restraint on dividend payments and bonuses, a day after bank shares slumped on fears of a Greek default. Kirsty Basset reports.

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As the G20 summit approached, these protesters were calling on global leaders to follow their lead in 'taking a plunge' - and making risky, but right decisions. (shows them splashing around in sea) One demonstrator called on European leaders to support Greek Prime Minister George Papandreou's decision to hold a shock referendum on a crucial bailout package. (SOUNDBITE) (English) SOREN AMBROSE, DEMONSTRATOR, SAYING: "We suspect that if the Greek president is coming to meet with Merkel and Sarkozy that there is a good chance they will try and pressure him to make some concessions such as to cancel the referendum. So I hope that he is able to say that democratic control in Greece cannot be controlled by people outside of Greece, that they will be able to have a referendum." But France is determined to see the bailout package agreed by euro zone leaders last week fully implemented, as fears of a potential default grow. French Prime Minister Francois Fillon told parliament Greece must decide quickly, whether it wants to remain in the euro zone or not. A day after French bank shares slumped on fears of a default, he also made assurances about the health of the nation's banks. (SOUNDBITE) (French) FRENCH PRIME MINISTER FRANCOIS FILLON SAYING: "The representatives of the banks confirmed to me that they would not need state capital funds for this and they confirmed to me their objective to go beyond and anticipate incoming capital rules under Basel 3 from 2013 so well in advance of the timeframe of this plan. The reinforcement of the banks' own funds should be their absolute priority. Given the current context, they should show the utmost restraint in paying out dividends to shareholders and in their bonuses policy." Shares in Societe Generale and Credit Agricole fell after the referendum announcement by 16 and 12 per cent respectively - both banks are among the most exposed to Greek debt. Kirsty Basset, Reuters.

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French PM's appeal to banks ahead of G20

Wednesday, November 02, 2011 - 02:05