PSA Peugeot Citroen looks for solutions to make its banking unit keep sufficient financing volumes for its dealerships and clients.
According to a recent report published by Le Figaro, a French newspaper, he French Finance Ministry and national banks were trying to find solutions to rescue Banque PSA Finance, which is under the threat of being downgraded to junk status. A decision is expected to be taken in several days. The newspaper added that a possible plan would be postponing the date of the 4 billion euro debt and introducing new credit lines of 1.5 billion to Banque PSA Finance, while the government will offer a guarantee for 4 billion euro.
“The management of PSA is reviewing different options to set up solutions enabling Banque PSA to maintain sufficient financing volumes for its end customers and its dealer network for the carmaking unit and the company as a whole to function well,” said a spokesman for PSA.
A decision has to be found quick, following Standard & Poor’s and Moody’s decision to cut PSA’s debt rating three months ago and to put BPF on review for a possible downgrade. Le Figaro wrote that some of the country’s most important banks including Credit Agricole, Societe Generale, BNP Paribas and Natixis, as well as several foreign banks are involved in the BPF discussions.