(Bloomberg) — The French government, which rescued Dexia (DEXB) SA, now faces the challenge of saving real estate lender Credit Immobilier de France without spending taxpayers’ money.
Prime Minister Jean-Marc Ayrault said yesterday on radio station France Inter that a guarantee the state agreed to provide CIF won’t hurt the government’s budget. The state has so far been unsuccessful in finding a buyer for CIF, a Paris-based mortgage bank owned by 56 local cooperative lenders.
“The state has taken its responsibilities in providing a guarantee, but as this bank has its own capital, the money of taxpayers won’t be called upon,” Ayrault, 62, said in the interview on France Inter.
Finance Minister Pierre Moscovici said in a statement on Sept. 1 that the government would provide a guarantee for CIF. The backing is worth 20 billion euros ($26 billion), Les Echos reported today, without saying where it got the information. The rescue follows the state bailout of Franco-Belgian lender Dexia, which needed aid in 2008 and in 2011.