On March 16th, 2020, the French President announced, during a
public conference, that a "State guarantee of 300 billion
euros" program to secure loans granted by banks to companies
will be set up to cope with the economic and financial crisis
resulting from the Coronavirus. However, the scope and effects of
this measure had yet to be defined by the French government and the
French Parliament.
On March 23rd, 2020, the French Parliament adopted the amendment
to the French budget law for 2020 (loi n° 2020-289 du 23
mars 2020) (the "Law") implementing
a State guarantee program (the
"Guarantee") to secure loans granted by
banks to companies during the crisis period created by the
expansion of Covid-19. The scope of the Law is broad and it
entitles duly licensed credit institutions
(établissements de crédits) and financing
companies (sociétés de financement)
(the "Financial Institutions") to
benefit from a guarantee issued by the State to secure loans
granted by them to
