Faced with the chaos of supply, Bercy launches a loan of 700 million euros for the industry – archyworldys

Lengthening delivery times, explosion in freight prices, congested commercial ports … for more than two years, a large number of companies have been hit hard by the effects of the health crisis throughout Europe. The various business surveys carried out by the Banque de France and INSEE show that the obstacles to supply remain numerous.

Faced with all these difficulties, Bercy received this Monday, December 13, all the industrial sectors affected since the start of the pandemic. The government which had announced the end of “whatever the cost” constantly postpones the end of the device. The fifth wave and the Omicron variant have again clouded the outlook in a few areas strained by the shock wave from the coronavirus.

Covid-19: despite Omicron, the French economy is holding up the shock (for now)

Loan of 700 million euros at BPI over 10 years, allocation criteria still unclear

“This is the first time that we have had a loan at this maturity at BPI France. It allows companies to manage their cash flow as well as possible” ensures the entourage of the Minister of the Economy Bruno Le Maire. The main new aid announced is the implementation of a loan for industry of 700 million euros operated by BPIfrance over 10 years. The objective is to support companies in their need for working capital and “strengthen their financial structure” indicates the press kit. Faced with budgetary issues, Bercy announced that it was above all a redeployment of underused BPI measures. “The loan has a rather broad vocation of support to the industry. There is no specific specific criterion at this stage” said a close friend of the minister. “The ceiling will be 5 million euros per company but we will do it on a case-by-case basis” he adds.

In addition to this loan, there is the extension of repayable advances and loans at subsidized rates until next June and a relaxation of the granting conditions. Finally, companies can also request payment facilities for compulsory deductions (fiscal and social) from managers.

Automotive and semiconductors still in the red

“The automobile industry has to contend with rising commodity prices such as plastics and rubber and the semiconductor crisis. Three out of four companies have identified cash flow problems.” remind Bruno Le Maire’s advisers. From suppliers to dealers and assembly lines, the entire automotive industry continues to be impacted by pandemic waves.

Already in 2020, the large groups had announced the closure of a few production sites and drastic cuts in the workforce. This year, the auto industry has lowered its production targets. While a large number of sectors have returned to their pre-crisis level, the automotive and electronics sectors are still in the red. This chaotic situation could well continue with the deterioration of health indicators.