Paris - After last-minute adjustments to secure EU approval, France on Thursday began implementing its bank bail-out plan.
Under the plan, the state will subscribe to subordinated five-year debt totalling 10.5 billion euros (13.75 billion dollars) issued by the country's six largest banks.
The debt subscription concerns the banks Credit Agricole (3 billion euros), BNP Paribas (2.55 billion), Societe Generale (1.7 billion), Credit Mutuel (1.2 billion), Caisses d'Epargne (1.1 billion and Banques Populaires (0.95 billion), the French Finance Ministry said.
In exchange, the French banks have committed themselves to increasing their loans to individuals and companies by 3 to 4 per cent by the end of 2009.