BCEAO releases $ 6 billion for West African economies

The BCEAO has just made a liquidity injection of 3350 billion FCFA ($ 6 billion) at a fixed rate of 2% in favor of several banks of the UMOA. A total of 87 financial institutions participated in the operation. The Central Bank of West African States (BCEAO) made a further injection of liquidity to its member countries last week. In total, 3350 billion FCFA ($ 6 billion) were disbursed by the institution.

During the auction on September 14, 87 banks in the sub-region obtained an injection of liquidity at a fixed rate of 2%. With more than 1000 billion FCFA ($ 1.8 billion), it is the Ivory Coast which obtained the most important financing, ie 31% of the funds injected.

It is followed by Senegal with more than 580 billion FCFA ($ 1 billion), Mali with 466 billion FCFA (835 million $), Benin with 434.5 billion FCFA (777 million $) and Burkina Faso with 318 billion FCFA. ($ 569 million). Niger with 241.6 billion FCFA ($ 432 million), Togo with 219 billion FCFA (…

Coronavirus: France government details its business assistance plan

"All of our energy is put into supporting employees and businesses," said Bruno Le Maire on Wednesday. The minister spoke of "tensions" in the logistics of mass distribution. The government is continuing to mobilize to preserve the economic life of the country. This Wednesday, the Prime Minister presented a series of changes contained in the emergency bill to deal with the epidemic. The latter must make it possible to "protect populations and take exceptional economic and social measures" necessary to protect activity, said Edouard Philippe. The changes will not last beyond the period of the epidemic and must allow, in the economic field, to support, "whatever the cost, companies, employees, self-employed, jobs, the active ”and the most vulnerable.

Coronavirus: France government details its business assistance plan

Bruno Le Maire presented the "radical, massive and effective" actions planned by the government. The total of the measures reached for the moment 45 billion euros, an "initial sum" to which is added the state guarantee up to 300 billion euros for the "new loans brought by the banks and the network banking ”contracted by any company, whatever its size. "These new loans are guaranteed by the state, so there is no reason for the banks to refuse them," welcomed the minister. 

In detail, the 45 billion euros are divided into several main measures that were already known. The increase in partial unemployment will make the French system "one of the most generous [...] and protective in Europe", he considered. The uncapping of partial unemployment alone will have a total cost "of more than eight billion euros over the next two months". At the same time, the deferral of social and tax charges for direct taxes on SMEs will represent a cash flow effort of around "35 billion euros". "If charges are canceled," they can be made after the crisis, on a case-by-case basis, added Bruno Le Maire.

Finally, the solidarity fund for small businesses with a turnover of less than one million euros should cost “one billion euros” over the month, a quarter of which is provided by the regions. This fund will be divided into two parts: first, a lump sum and automatic compensation of 1,500 euros for all companies that closed their doors during confinement, such as bars and restaurants, and which can no longer operate, as well as for those , still open, which will have seen their turnover melt by at least 70% between March 2019 and March 2020. In parallel, the second part will consist of aid which may represent several thousand euros for companies threatened with bankruptcy, with less than one million euros in turnover. They will be decided on a case-by-case basis, and this second system will be co-piloted by the State and the regions.

In addition to these various measures, the spreading of gas and electricity bills as well as rents for small businesses and small businesses. "We have started working with operators" for rents, said Bruno Le Maire.

Employee absences in large retailers generate “tension”
For Bruno Le Maire, these measures must allow "our companies to resist" the shock caused by the coronavirus. The epidemic generated a crisis impacting "whole sectors of the economy, immediately and violently, without leaving them the possibility of reacting", he was alarmed. For the time being, Bercy therefore expects French growth to decline this year, of the order of -1%. This estimate remains provisional, however, given the "unstable" context, and could be revised depending on the progress of the epidemic and its consequences on activity in the United States, said Bruno Le Maire. The Minister of Public Accounts, GĂ©rald Darmanin, then clarified that the government should revise its ambitions downwards for 2020: the public deficit should therefore stand at -3.9%, much higher than the 2.2% forecast so far. "There is a difference of 15 billion euros compared to the finance law that the Parliament voted at the end of December" 2019, concluded the representative of the government.

The Minister also returned to the situation in large distribution: confirming that the stores were not lacking in products, Bruno Le Maire, however, clarified that the state services were beginning to note a "tension in supermarkets and shops in terms of employees". In other words, the logistical issue, and the presence of employees in store premises as well as on the side of carriers, to allow the proper functioning of businesses, is the subject of enhanced attention, more than the availability of products. Overall, "there is no supply problem today in the supermarket network," tempered the boss of Bercy.

In addition, the Minister of the Economy reiterated that the State would use "all the necessary instruments" to protect the French industrial jewels attacked on the markets. For now, the nationalization of Air France still seems far away, Paris will take "no decision" without the agreement of its Dutch partner beforehand. Bruno Le Maire also reiterated his support for employees working face-to-face during confinement, in the sectors essential to the smooth running of the country: "We will do everything with the trade union organizations to guarantee their health protection at work", he said. he declares.