The French government is to provide €5bn in credit guarantees to help Airbus sell aircraft to customers that are struggling to secure finance for their purchases because of the credit crunch. Paris will channel the money to the aerospace group via French banks, which will receive a further €5bn ($6.5bn) in state guarantees from the body set up last year to back up to €320bn in new bank debt, a government official confirmed Sunday night. EADS, the aircraft maker’s Franco-German parent company, in which the French state has 15% stake, insisted last week it would not be a “substitute for the banks” in helping customers.

This entry was posted by Gwen Robinson on Monday, January 26th, 2009 at 5:41 and is filed under Capital markets. Tagged with Airbus. Edit this entry.