France—cross border banking and finance guide
Produced in partnership with Hogan Lovells International LLP

The following Banking & Finance practice note produced in partnership with Hogan Lovells International LLP provides comprehensive and up to date legal information covering:

  • France—cross border banking and finance guide
  • Loan market and developments
  • Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.
  • Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.
  • Lending
  • Is it necessary to obtain any consents or licenses in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining the consent or license? Are there any other restrictions on lending that foreign lenders should be aware of?
  • Are there any taxes, duties or other charges associated with making loans to entities that are incorporated in your jurisdiction?
  • Are there any restrictions, controls, fees, taxes or charges on foreign exchange in your jurisdiction?
  • How is debt normally transferred in your jurisdiction?
  • Security and guarantees
  • More...

France—cross border banking and finance guide

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.

The main funding source for small and medium-sized companies (Petites et Moyennes Entreprises) and for mid-cap companies (Entreprises de Tailles Intermédiaires) are still bank credit facilities.

However, it should be noted that those companies try to diversify funding sources so as not to be too dependent on bank financing and to find funding sources with larger maturity periods.

Companies are using more and more corporate bonds as a funding source notably with the unirate loan financing which is a single tranche of financing combining senior and mezzanine debt in a single line of credit subscribed in a private fund. The main difficulty related to this diversification of funding sources is the French banking monopoly rules as stated below.

Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.

Sanctions adopted by the US and EU must be taken into account as they include restrictions on financing activities related to certain prohibited persons and countries.

No changes to the law that may significantly affect loan markets or the questions below have been identified.

Lending

Is it necessary to obtain any consents or licenses in

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