PARIS (MNI) – France’s lower house of parliament, the National
Assembly, voted late Monday night to approve E16.8 billion in loans to
Greece over three years, which is the French contribution to the
Eurozone’s E80 billion Greek aid package.
The Assembly adopted a supplemental budget bill that includes the
French contribution to the package and sets aside E3.9 billion of the
total amount for disbursement in 2010 at an interest rate of 5%.
The French contribution corresponds to France’s 21% share in the
capital of the European Central Bank.
France’s participation in the Greece bailout plan will increase its
projected budget deficit this year by E3 billion to E152 billion, the
French Treasury said last month. The E3.9 billion disbursement to Greece
will be partially offset by an increase of E900 in estimated state
revenues, the Treasury said.
The opposition Socialist Party joined the ruling UMP in voting for
the plan, although the Socialists objected to the 5% interest rate,
which they deemed too high. The Communist Party voted against the
package.
The French Senate is expected to approve the deal on Thursday or
Friday.
–Paris newsroom, +331-42-71-55-40; bwolfson@marketnews.com
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