The ISP should however stop supply of Fund of funds

Finished the g-20, Nicolas Sarkozy came yesterday to 2,000 members of CGPME, in "ground man". With in his baggage 2 billion euros of financing of own funds-oriented SMEs, parity between OSEO and the strategic investment Fund ("Les Echos" of yesterday). Announcements applauded by the Medef: "the President of the Republic gives the example of small business attitude," held its President, Laurence Parisot. However, "the real problem of French SMEs today, it is their margin rate significantly lower than that of SMEs in the Western world". In its proposals for the large loan, the Medef proposed to establish a guarantee fund for SMEs, with EUR 1 billion per year for ten years. The UPA (Artisan) "approved the new plan" but also recalls that "the majority of companies, those employing up to 20 employees, are first confronted with difficulties of cash".

Saving oxygen puff

For the mechanical industry, the new device, in particular the equity loans, is a breath of oxygen saving. The sector, consisting primarily of SMEs, feared losing up to 60,000 jobs this year. He has seen business fall by about 16 on an annual basis at the time, between March and August. Since the end of destocking has somewhat improved the situation. But after this technical rebound, "the year 2010 is likely to be worse than 2009, because the investment is not about to leave, to alarm Yvon Jacob, President of the Federation of mechanics." The banking system does not meet our needs, and our companies are already very weakened. They held the kick if they can get the long, with a guarantee of the State.

The plan presented yesterday supports the role of the strategic investment fund. Traditionally perceived as intended to secure the capital of the great industrial jewels (Valeo, Gemalto or Technip), the ISP spends much of its 20 billion euros of resources for SMEs. Under the label ISP SMEs, the ISP will "steer" specially EUR 1 billion to SMEs, through its subsidiary CDC enterprise or ISP France investment program.

Additional ways

Among the various announcements of yesterday, there are in fact EUR 400 million in "new money", of which 300 million investment proposed in convertible bonds. Corporation future business, subsidiary of CDC business and OSEO, already realized in the form of investment of 50,000 to 500,000 euros in different sectors, will increase its capacity up to 2 million euros. CDC business is going to offer direct investments in convertible bonds for an amount of 2 to 4 or 5 million euro SME.

The ISP will also extend its actions "classic" for SMEs, with additional resources. The envelope reserved for the direct financing capital in SMEs will increase from EUR 120 million over two years to EUR 200 million. That to indirect financing (through other funds) will increase from 200 to 300 million euros per year. The ISP should however stop supply of Fund of funds.

Last good news for businesses, the European Commission gave its green light yesterday, device "Cap export" of public credit guarantee to protect suppliers to their customers to export defaults.