SocGen Takes Second Tranche of Loan from France

Societe Generale, the third largest French bank, will soon take the rest of 1.7 billion euro from the credit line granted by the government from Paris, said Frederic Oude, the executive director and president of the bank, writes Bloomberg.

Accessing loan government is “imminent”, according to Oude, and represents the second tranche of 3.4 billion euro offered by the French government as part of a program to stimulate lending and revive the French economy.

Oude said that the measures taken by the government in Paris is sufficient to generate growth in the next period. The General Director of SocGen has excluded the repetition of a “fraudulent” practice, case similar to those traders Jer ™ me Kerviel, stating that the bank has strengthened security measures and control. Unauthorized investments made by Kerviel have caused record losses of 4.9 billion euro for the French lender.

SocGen plans to increase its staff by 4,000 employees this year, half of them will be young graduates, said Oude. In the first quarter, the French bank reported net loss of 278 million euro, due to decline of value of assets and higher provisions for bad loans.

Results of the first three months of the year do not seem to deter the Oude, who said that the division of banking and investment group recorded a positive evolution.