This seems to be more than a matter of commas. The Charter of good conduct between banks and local communities should be concluded today by the representatives of the two parties, at the ultimate meeting of work. This text, resulting from the assigned mission in November to Eric Gissler by Michèle Alliot-Marie, Minister of the Interior, and Christine Lagarde, Minister of finance, trace a series of yellow lines that one and the other will engage, once they have signed it, not exceeding in borrowing.
Funding for local market, completely liberalized, is not free of impurities. Of the very attractive air, one party 19.2 in volume last year according to the Board in managing debt Finance Active so-called structured loans which experienced a development in recent years can be terribly harmful for which contracts. -Backed rates initially very advantageous, some products become impossible to control due to the degree of extreme sophistication, if exotic (rate indexed on the Warsaw stock market index, for example), evidence on which they switch after a few years.
Last summer, just elected Mayor of Saint-Etienne, Maurice Vincent (PS) had first taken the alarm on the risk of runaway debt. In November, Claude Bartolone, the new President (PS) of the General Council of Seine-Saint-Denis, sounded the tocsin in turn. Maybe "of toxic loans", the community threatened to stifle financially. 50 Communities, according to a survey of the Ministry of the Interior, would be exposed to such contamination.
A ruthless mechanics
A number high enough to justify the establishment of a cordon sanitaire. This is the meaning of this Charter commitments to which Dexia, the Caisse d Epargne, Société Générale and Crédit Agricole, inter alia, are invited to subscribe. First oath, these banks, who participated in the preparation, must renounce propose "any product exposed to risk capital and products based on some indices high risk". Exit loan indexed on the course of a raw material or the relative value of a currency. To nettles, loans so-called "snowball" whose rates increase by a ruthless mechanics set. On the other hand, banks must make a commitment to introduce a scale of risk (from level 1 to the lowest level 5) in the presentation of their offerings to local communities. A duty of transparency to which they also require. Their Executive "shall provide, in the budget debate, a detailed presentation that recalls the outstanding structured products, the nature of the underlying indices, the structure of the products and an analysis of the risks associated with these products".
Good provisions
Wednesday, the Office of the Association of mayors of France (MFA) has given its green light to its President, Jacques Pélissard, to sign the Charter. "This incentive device going us very well." "We didn't absolutely a legislative system with constraints", explains Philippe Laurent, the Chairman of the Board of Finance of the MFA. Unlike the law, this Charter is not indeed question the principle of free administration of local communities. Despite the precautions taken in its preamble, it is in is not less gnashing of teeth in certain cities, deemed directions for their ability to innovate in borrowing. On their side, banks are in good provisions, except changing the text, should the remain today. Last week, the Charter "agreed overall" to Dexia.
This has not prevented some as BNP Paribas for EUR 1Balance on the design is not easy to findHere is the effect of a successful campaign76 to 94621 points over the same periodOur agreement with HP goes beyond outsourcing he saidThe increase should be close to 6 billionThe acquisition of ImClone would fill this gapHis arrival the Jura plant produced 400000 pipes per yearYes the risk of hitting an iceberg is still real Even if 90 of our coverage will remain the same
