France expects eu Backing For corporate recovery

France is optimistic that the european Commission will sign off within days on an innovative plan for helping companies through the post-pandemic recovery, according to a finance ministry official. The French government has proposed a program to partially guarantee billions of euros of so-called participatory loans to improve corporate balance sheets and encourage borrowing for investment. The scheme is intended to benefit companies with long-term prospects. The instrument, which is supported by the French central bank, is essentially a blend of debt and equity — and a crucial plank of the recovery strategy. The government is concerned that high debt levels built up during the pandemic not only put firms at risk of default, but also constrain their ability to borrow and invest.