91997E2629

WRITTEN QUESTION E-2629/97 by Gijs de Vries (ELDR) to the Commission (1 September 1997)

Subject: Crédit Lyonnais

According to The Economist (July 5 1997), 'Important details of the last rescue sanctioned by Brussels, back in 1995, were never respected'.

Is this allegation correct? If so, what specific initiatives did the Commission undertake to have Crédit Lyonnais comply with the 1995 Commission decisions?

Answer given by Mr Van Miert on behalf of the Commission (22 September 1997)

In 1995, the Commission approved the restructuring aid to Crédit Lyonnais amounting to FF 45 billion (MECU 6,800). The particularly complex aid scheme included a capital injection by the French State and the hiving-off of FF 135 billion (MECU 20,400) of Crédit Lyonnais' assets into a special vehicle covered by the state guarantee. The Commission gave its approval subject to a set of conditions to be fulfilled by the French authorities ((OJ L 308, 21.12.1995. )). These conditions included the full application and implementation of the restructuring plan submitted to the Commission, the reduction, by the end of 1998, of the Crédit Lyonnais commercial presence outside France to an extent equal to 35% of the bank's presence abroad at the end of 1994, the issuing of a zero coupon loan by Crédit Lyonnais to the benefit of EPFR (Etablissement public de financement et de restructuration) and some conditions on the relations between Crédit Lyonnais and the vehicle which took over the assets hived-off from Crédit Lyonnais.

In September 1996 the French authorities notified a new emergency rescue package to Crédit Lyonnais of about FF 4 billion (MECU 605). The Commission decided ((OJ C 390, 24.12.1996. )) to approve the rescue aid and to open a formal investigation on any further aid that could be needed by Crédit Lyonnais, as well as to assess whether the previous 1995 Commission decision was fully respected (including the infringement of the zero coupon issuing obligation). This investigation has not led to a final decision yet.

At this stage the Commission is not aware of any infringement other than the non-issuing of the zero coupon.

In the framework of the current investigation, the Commission has decided to appoint a leading investment bank to advise it in the assessment of the new Crédit Lyonnais restructuring plan.