France to inject $14 bn into six major banks

October 21st, 2008 - 1:13 pm ICT by IANS  

Paris, Oct 21 (DPA) France will inject 10.5 billion euros ($14 billion) into the country’s six biggest banks in an effort to provide capital for business and consumer lending, Finance Minister Christine Lagarde announced late Monday.The government is to subscribe to subordinated debt issued by the six banks but will not gain voting rights.

In all, Paris could eventually inject 40 billion euros into the financial system by this method, as part of the 360-billion-euro rescue package forged earlier in October.

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