Economy of French Republic
France is in the midst of transition from a well to-do modern economy .
The government has partially or fully privatized many large companies,
banks, and insurers, and has ceded stakes in such leading firms as Air
France, France Telecom, Renault, and Thales.
It maintains a strong presence in some sectors, particularly power, public
transport, and defense industries.
France is the most visited country in the world and maintains the third
largest income in the world from tourism With at least 75 million foreign
tourists per year.
France has weathered the global economic crisis better than most other big
European Union economies.
France's real GDP contracted 2.5% in 2009.
It recovered somewhat in 2010, while the unemployment rate
increased from 7.4% in 2008 to 9.5% in 2010.
The government budget deficit rose sharply from 3.4% of GDP in
2008 to 6.9% of GDP in 2010, while France's public debt rose from
68% of GDP to 82% over the same period.
Paris is terminating stimulus measures, eliminating tax credits, and
freezing most government spending to bring the budget deficit
under the 3% euro-zone ceiling by 2013.
There is a minimum employment wage in France that is regulated by
the French Government.
These minimum wages are called ― SalarieMinimum de Croissance
(or SMIC for short), and are set at around 8.86 Euros per hour of
Moreover the wages are paid at least once every 30 days, mostly at
the end of each month, and payment is made through either check
or deposit into the employee‘s bank account.
In Comparison to INDIA, France has a better way of calculating the
wages to be given to the employees with respect to their work.
The crises was preceded by long period of rapid credit growth ,low-risk
The ongoing recession is thus likely to leave deep and long-lasting
traces on economic performance
The financial crisis has had a pervasive impact on there al economy of
Slow down is widely perceived to require an adjustment of fiscal
positions towards close to balance the economy .
The unemployment rate is forecast to increase to close to 11% in the EU
The emerging economies in Asia–in particular China–and oil
exporters are disposed to assume their role as US creditor owing to
their large national saving surpluses.
The French have been experiencing difficulties in paying for their
loans and debts.
The financial crisis offers no job opportunities for them
They are now getting into too many debts because they cannot find
money to pay these transactions because of this crisis
Moreover, financial institutions are also closing down.
Creating two state agencies that will provide funds to sectors where
they are needed-
One entity has issued up to $480 billion in guarantees on inter-bank
lending issued before December 31, 2009, and was valid for five
Other entity will use a $60 billion fund to recapitalize struggling
companies by allowing the government to buy stakes in the firms.
President Sarkozy announced that the French government would
take a tougher stance toward French banks that seek state aid. Up to
that point, France had injected $15 billion in the French banking
The Indian banking system has had no direct exposure to the subprime mortgage assets or to the failed institutions. In fact, our
banks continue to remain safe and healthy.
External demand, as measured by merchandize exports, accounts
for less than 15 per cent of our GDP.
The Indian corporate sector's access to external funding has
markedly increased in the last five years. In the five-year period
2003-08, the share of investment in India's GDP rose by 11
The big risk is a possible repeat of what happened in 1996: Projects
that are halfway to completion, or companies that are stuck with
cash flow issues on businesses that are yet to reach break-even, will
run out of cash.
One danger meanwhile is of a dip in the employment market. There
is already anecdotal evidence of this in the IT and financial sectors,
and reports of quiet downsizing in many other fields as companies
Significant drop in new hiring --and that will change the complexion
of the job market.
India has taken an array of monetary and fiscal measures, in quick
succession, to contain inflationary pressures.
The Reserve Bank had, within four weeks in October, lowered
reservations and reduced a key interest rate to provide some 250,000
crores of liquidity for banks to finance businesses and consumers
The confidence and strength to the Indian economy is its sound financial
sector with its well-regulated and well-capitalized banking system.
RBI projects that the annual rate of inflation would be down to 7 percent
by March 2009.
Even at 7.5 percent, India will remain these fastest growing economy
The Prime-Minister has set-up a high powered group chaired by him to
closely monitor the evolving macro-economic
If we see in this manner a lot of decisions which are taken up by the
French government are ought to be learned and applied in India
The political relations positively are used by French government for
the progress and growth of the economy
The French economy is well managed and some positive and right
decisions has took it to the greater heights and apart from
India’s success is also remarkable being a fastest growing
developing country but need to adopt some more good policies from
French banking industry is constantly opening its business world wide.
Payments via debit card can be made in one payment at the end of each
month rather than immediately.
Pin-code needs to be used with each over-the-counter card transaction.
These measures successfully cut down on credit card debt and fraud
problems in France & other countries also.
French mortgage is a very attractive option to many investors,
normally offer 100% mortgage finance to foreigners, with interest
rates capped at 4%.
Fixed rate mortgages are available for long terms only of between
10 and 20 years maximum term for a French mortgage is 20 years
or up to the age of 70 ,which ever is sooner.
Online banking is a highly popular option and it is widely used,
however quality can vary greatly and most banks make a monthly
charge for the use of online services
BNP Paribas is one of the main banks of Europe and France, the
product of the merger between Banqu National de Paris and Paribas
BNP Paribas is divided into three individual business units
Corporate and investment banking
Which is where you will find real estate services
Money markets history
The French Fungible Treasury bond rates trend is positive.
After a downfall of 2.50% in summer2010, it then sky rocketed
between late 2010 and early 2011, reaching 3.80% for instance
in mid-April 2011.
(for variable and capped rates)
Short term Interest rates in money markets reflect the price at
which banks lend money to one another over short periods.
These rates serve as the reference for variable rate loans. Banks
add a margin of between 0, 60% and 1,50%, to the short rate
3.)Long-term rates(for fixed rates)
BNP Paribas India Solutions Private Limited (BNPPISPL), incorporated
in 2005, is a subsidiary of BNP Paribas S.A.
BNP PISPL aims to provide info-centre, data- warehousing, IT and
back-office processing services, with major focus on capital markets
information technologies as well as regional – organization -andmethods.
BNP PISPL provides the bank's business lines and functions a
competitive and efficient platform to cope with the ever growing
operational and informal on technology requirements.
-SBI owns 74% of the total capital and BNPParibas Cardiff there
Sundaram BNP Paribas Mutual Fund has been set up as a Trust
under the Indian Trust Act, 1882.
It has over 7000 crores (USD1.55billion) as Assets under
Management (AUM) as on November 13, 2006.
It has eleven equity, thirteen debt and one-hybrid products catering
to various categories of investors.
It has been allotted CPR1 ranking by CRISIL for three consecutive
quarter sending December 2005, March 2006 – and –June - 2006.
Geojit BNP Paribas Financial Services is one of the leading retail
stock brokers in India, with a strong presence in the Gulf countries.
Listed on the National Stock Exchange (NSE)and on the Bombay
Stock Exchange (BSE)
BNP Paribas Securities India Private Limited is the company's jointventure with BNP Paribas for institutional brokerage.
Sundaram Home Finance Limited was incorporated on July2, 1999,
under the Companies Act 1956 and Union de Credit pourle Batiment
(UCB) a wholly-owned subsidiary of BNP Paribas, France
It had entered into an agreement on 9th May 2007, regarding a
strategic partnership in housing finance in India whereby UCB will
acquire a 49.9% stake in Sundaram Home Finance Limited, a
subsidiary of Sundaram Finance Limited.
Consequent to the completion of the regulatory approvals, the name
of the Company has been changed to Sundaram BNP Paribas Home
Finance Limited effective 28th November 2007.
State Bank of India Paris which is in France offers the full range of
International Banking products and services.
They are capable of handling customer„s international transactions
with speed, efficiency and a professional touch.
Following is an indicative list of products and services offered in the
International Banking area.
1) PRODUCTS OFFERED (DOMESTIC/CROSS BORDER)
2) SERVICES OFFERED
a) Collection of Bills
c)Confirmation of L/Cs
d) Negotiation/Reimbursement/Discounting of Bills drawn under
Credits and Loans
Credits and Loan State Bank of India, Paris offers both fund-based
and non fund based facilities to business and industry to take care
of their long term and short term requirements.
Buyer’s Credit/Supplier’s Credit
Revolving Loans/Lines of Credit
Overdrafts/Loans against cash collaterals
Financing of International Trade
SBI, Paris offers both fund – based and non fund based facilities to
business and industry to take care of their long term and short term
The branch caters to the business interest of French exporters and
our charges are very competitive for India -related-business.
Letter of Credits/Stand by Letter of Credit
1.Speedy collection of Export Proceed
2.Free assistance in compilation of Documents
3.Supplier’s Credit / Buyer’s Credit
Deposits:They accept Fixed Deposits for a minimum amount of EUR
3.0 and for USD and Pounds 5.0. The minimum period is 3months.
State Bank of India Paris is a member of Deposit Insurance
Saving Bank and Term Deposits are eligible for deposit insurance
from the Deposit Insurance Corporation, subjected ways to
maximum coverage limitations as out lined in their brochure
"Protecting Your Deposits” and provided they are in Euro, are
payable in France
Type of Deposit: Term Deposit, Callable at the discretion of the Bank
Currency of Deposit : Euro as well as US Dollar
Deposit Amount : The minimum amount of Deposits hall be USD/Euro
Period of Deposit :One year but callable at par at the discretion of the
Bank on each interest reset payment date, which is three months.
Issue Price: 100%
Maturity Payment : 100% with interest.
Rate of Interest : 3 months LIBOR plus 10BP .(For Amounts higher than
USD/Euro 100,000.00 a further plus rate is available).
Premature payment: Not allowed, however, Dem and Loan upto 75% of
the principal amount can be given to the account holder.
SBI is the largest commercial bank in the country and has reach all over
It contributes highest economy development of the company through
various capital market instruments.
BNP Paribas having existence in 80 countries is one of the most
widespread banking network.
As India is a developing nation French banks are eager to enter Indian
market for the business purposes.
The various joint ventures and business in one other country gives a
global platform for our nation’s banking industry.
France , which has been leading efforts to curb financial crisis, has
proposed a package of measures estimated to cost over $500 billion.