Sarkozy tightens conditions on state aid for banks

French president Nicolas Sarkozy called 15 January 2009 for curbs on dividend payments by French banks and for top executives to renounce any bonuses as conditions for a fresh capital injection by the government.

The new criteria amount to a significant toughening of the French government’s approach to its banking sector and reflect growing concern across Europe that banks are not doing enough to keep credit flowing to companies and households.

The massive stimulus plan unveiled in December 2008 by President Sarkozy was approved by France's National Assembly on the 13 January 2009. The Senate will vote on the 26-billion-euro plan on 21-22 January 2009.

France24, 15.1.09: French lawmakers approve stimulus plan http://www.france24.com/en/20090113-stimulus-plan-approved-french-lawmakers-

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