France

Adoption date

Type of measure

Beneficiaries' sector specification

Description of measure

N/A

Public guarantees

Non-financial corporations

N/A

15/03/2020

Tax deferrals

Non-financial corporations

Mostly tax payment deferrals and advanced returns of tax credits (€17bn of taxes and €49bn of social contributions so far)

15/03/2020

Direct grants

Households

Extended short-time work scheme: around 84% of net salary directly compensated by the state during lockdown, reduced since June. The STW scheme runs until May 2021: it will be replaced for some sectors by an ordinary short-term work scheme, the “Activité partielle de droit commun”, that firms can use to face temporary shocks over a three-month renewable period (six months overall). Since 1 July 2020, a Long-term job retention scheme ("Activité partielle de longue durée") has also been implemented for firms facing a lasting shock. Total volume planned of €27,6bn in 2020 and €11bn in 2021.

15/03/2020

Direct grants

Non-financial corporations

N/A

23/03/2020

Public support for trade credit insurance

Non-financial corporations

N/A

17/07/2020

Public support for trade credit insurance

Non-financial corporations

CAP Relais is a global reinsurance program that covers all outstanding credit insurance, both domestic and export.
These exposures are reinsured by Caisse Centrale de Réassurance (CCR) on a risk sharing basis of 75% i n 2020 (20% in 2021) for CCR and 25% in 2020 (80% in 2021) for credit insurers. Losses that can be covered by CCR are capped by a loss cap of 500% (claims / Premium ratio)

15/03/2020

Private moratoria

All non-financial sector

The moratorium changes only the schedule of payments : suspension, postponment or reduction of the payment within a limited period in time. Other conditions of the loan are not affected.

29/12/2020

Public guarantees

Non-financial corporations

This measure aims at giving confidence to viable firms, in order to incentivize them to maintain their objectives and development speed. In practice, the French government intends to support the provision of quasi-equity in the form of loans, by guaranteeing investments funds which would invest in such loans: banks will provide the loans to firms which can prove they are viable to allow them to invest and develop. Banks will then transfer these loans to investments funds in which institutional investors will invest. In order to align all interests, a minimum share of each loan (10%) will not be transferred to investment funds and will be kept on the bank balance sheet. This measure will also apply to subordinated bonds, in order to mobilize private equity funds for the financing of our recovery.

15/03/2020

Public guarantees

Non-financial corporations

State loan guarantee : €300 bn maximum total volume planned

15/03/2020

Direct grants

Non-financial corporations

Direct subsidies to firms and self-employed

23/03/2020

Public support for trade credit insurance

Non-financial corporations

4 public credit insurance products, CAP, CAP+, Cap Francexport and Cap Francexport +, designed to maintain or strengthen individual credit insurance coverage.
This ceiling, initially set at EUR 1 billion, was raised to EUR 5 billion.

15/03/2020

Public guarantees

Non-financial corporations

State loan guarantee : €300 bn maximum total volume planned

01/03/2020

Other measure

Securities and markets

The AMF is monitoring market infrastructure, notably the implementation of their business continuity plans. Overall, despite being under stress, they are resilient. On 6 March, the AMF issued a press release where the AMF :
• Recalls that shareholders can vote without being physically present at general meetings,

• Encourages remote voting and recommends issuers to broadcast in live their general meetings via their website.
• Recall the possibilities given for remote voting are either by correspondence, by giving a voting mandate, or by internet through secured voting platform (if the statutes of the issuer allow it and this voting method is provided by the issuer).

18/03/2020

CCyB

Banking sector

Release of the CCyB buffer rate at 0%. It was previously set at 0.25% and set to be at 0,5% as of 2nd of April 2020. It will remain at 0% until the 7th april 2023, date on which the rate will increase at 05% (decision taken the 7th April 2022)

28/07/2020

Dividend distribution policy

Insurance sector

The ACPR published a recommandation on April, 3rd of 2020 concerning dividend distribution : it states that insurance companies should refrain from proposing dividend distributions to their AGM, at least until October, 1st of 2020, and to apply a cautious policy reagrding variable remunerations. This recommandation was extended by another recommendation published on JUly, 28th (for both credit institutions and insurance companies).

09/04/2020

Reporting requirements

Banking sector

In accordance with EBA recommandations (31 March), the ACPR decided to relax reporting obligations for its supervised credit institutions (one to two months extension, depending on the documents involved).

26/03/2020

Reporting requirements

Insurance sector

In accordance with AEAPP recommandations (20 March), the ACPR decided to allow insurances to flexibilize reporting obligations (several weeks or several months, depending on the documents involved).

28/07/2020

Dividend distribution policy

Banking sector

The ACPR published a recommandation on March, 30th of 2020 concerning dividend distribution: it states that banks should not temporarily distribute dividends considering the current economic situation. This recommendation was extended by a recommendation published on July, 28th.

15/04/2020

Short selling ban

Securities and markets

17 March: the AMF announces a temporary short selling ban on certain shares until the end of the trading day of March 17. Considering the fall in shares prices observed on financial markets in the last days, the AMF has decided to take a urgency measure pursuant to the European Short Selling Regulation. Consequently, short selling in 92 shares is prohibited until the end of the trading day of March 17, 2020. 17 March: AMF will ban, subject to ESMA’s opinion, all short net position or increase of all short net position applies to persons established or resident in France or abroad when the position involves a share admitted to trading on a trading venue in France and the share falls under the jurisdiction of the AMF within the meaning of the regulation. The ban is applicable from 18 March 2020 at 00:00 hours until 16 April 2020 at midnight.

02/04/2020

Announcement or public statement

Securities and markets

AMF concurs with the ESMA statement asking all financial market participants, including infrastructures to be ready to apply their contingency plans, including deployment of business continuity measures, to ensure operational continuity in line with regulatory obligations.

The AMF is part of the group that gathers other French regulators, banks and market infrastructures of the French financial system. Close monitoring and regular calls with entities to inform us on the details of their business continuity plans and the measures they have taken so far.

The AMF issued a press release to remind that market participants are allowed to work from home. In that context, entities are expected to be watchful in case of risks of conflict of interest and possible latency risks which may incur difficulties with the monitoring of real-time trading.
The statement also recalls :
• The importance of audit trail and voice-recording and expect participants to take the appropriate steps to ensure the compliance with these requirements.
• The compliance with transaction reporting rules which are crucial for the monitoring of market participants,
• The press release issued by ESMA with regards SFTR reporting which will start at a later stage in the year.
• Postponement of submission of RCSI annual questionnaire until 15 May 2020. This could be further delayed.
As for other questionnaires and reports to be submitted to the AMF, as a general rule and unless explicitly stated to contrary, the due submission of questionnaires and reports to the AMF may be reasonably deferred.

26/03/2020

Other measure

Securities and markets

Enhance supervision of irregular offers by adding specific key words related to the epidemic in our monitoring tools.

01/03/2020

Other measure

Securities and markets

• Close monitoring of the largest asset managers via daily communication, complementing by a new daily reporting to the main depositaries focusing notably on daily flows, breach limits, potential valuation issues.

15/04/2020

Other measure

All non-financial sector

French Parliament adopted through a new Loi de Finances an extension of its previous fiscal plan to support firms, workers and households. The previous plan was therefore increased from 45 billion euros to 110 million euros (without taking into account public loan guarantees, which are still evaluated at 300 GEUR). The partial unemployment sheme support is for instance estimated at 24 GEUR ; the tax and other charges postponment (with potential cancellations) at 50 GEUR, specific support for SMEs (7 GEUR), the health sector (8 GEUR).

15/04/2020

Other measure

All non-financial sector

The Loi de Finances of 25 April also introduces a new scheme which aims at supporting strategic companies facing difficulties by offering injections of capital up to 20 GEUR.

21/04/2020

Announcement or public statement

Insurance sector

The ACPR published a communication reminding insurance companies of their important role to support their clients in these exceptional times. Insurance companies are reminded that they shall act in their clients' best interest and make sure they accommodate their clients' need or request for information, as well as show additional tolerance with regards to client delays.

21/04/2020

Announcement or public statement

Insurance sector

The ACPR published a communication calling for insurers to prudently manage their regulatory capital in light of the uncertain but signficant negative impact the current crisis will have on the valuation of their assets and capital instruments. The ACPR reminded insurance companies that instruments aimed at mitigating the economic shock for their clients cannot be used to cover events explicitly excluded of their contracts.

25/03/2020

Other state of emergency measure

Other

On March 25th, the government adopted two ordinances in order to prorogate deadlines applicable to undertakings: an ordinance to prorogate deadlines relative to annual accounts ; an ordinance to enable general assemblies to function on-distance (convocation and meeting by virtual means).

23/03/2020

Other measure

All non-financial sector

Bpifrance Export Insurance will be able to cover the credit institutions up to 90% of issued and declared guarantee commitments (export guarantee insurance) or pre-financing set up (pre-financing guarantee) - compared to 80% previously - for SMEs. For other companies, the insured may be covered up to 70%, compared to 50% previously. Companies applying for an export pre-financing guarantee will now have six months (as opposed to four months previously) to set up the underlying pre-financing credit.

23/03/2020

Other measure

All non-financial sector

One-year extension of the prospecting period covered by the prospecting insurance policies : companies that have taken out a prospecting insurance will benefit from an additional year of insured prospecting (3 years of prospecting for 2-year contracts, 4 years of prospecting for 3-year contracts).

23/03/2020

Other measure

Non-financial corporations

Based on the experience of the 2008 crisis, four public credit insurance products, CAP, CAP+ were introduced last April and are designed to maintain or strengthen individual credit insurance coverage. They are distributed by private credit insurers in cases where the policyholder is not sufficiently covered by the primary insurance policy on a specific individual buyer risk or where the credit insurer itself does not want to underwrite the risk of default of that buyer. These products are reinsured by Caisse Centrale de Réassurance, the French public reinsurer

18/02/2021

Dividend distribution policy

Insurance sector

The ACPR published a recommandation on March, 30th of 2020 concerning dividend distribution; extended by another communication published on July, 28th 2020, furter extended by a communication on February 18th 2021. The latter states that insurance companies should apply extreme caution in distributing dividends. Distribution plans need to be communicated to ACPR, which will assess them on a case by case basis.

18/02/2021

Dividend distribution policy

Banking sector

The ACPR published a recommandation on March, 30th of 2020 concerning dividend distribution; extended by another communication published on July, 28th 2020, furter extended by a communication on February 18th 2021. The latter states that bank institutions should apply extreme caution in distributing dividends. Distribution plans need to be communicated to ACPR, which will assess them on a case by case basis.

07/04/2022

CCyB

Banking sector

Increase of the CCyB to a 0.5% rate. The CCyB has been set at 0% since march 2020.