French banks forced to assure investors on Greece exposure
Published 13/09/2011 | 15:59
BNP Paribas and Societe Generale have denied they were struggling to borrow money today, helping to ease traders' fears about the eurozone debt crisis.
French banks, which have the biggest exposure to Greek debt of €45bn, have taken a hammering this week amidst fears the country is close to a default.
But BNP Paribas "categorically denied" reports it was unable to raise dollar funding while Societe Generale, which had fallen as much as 8.1pc, jumped after chief executive Frederic Oudea said the bank’s exposure to European sovereign debt was “manageable.”
He also said the bank could do without access to US money-market funds.
“For our bank, the exposure to sovereign debt is low, absolutely manageable,” Mr Oudea said in an interview with Bloomberg TV.
“We have plenty of buffers of liquidity and we are adjusting to the reduction in the money- market fund exposure.”
The two banks dropped more than 10pc yesterday on speculation of a ratings cut by Moody’s because of their holdings in Greece.
French lenders top the list of Greek creditors with $56.7 billion in overall exposure to private and public debt, according to a June report by the Basel, Switzerland-based Bank for International Settlements.