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France announces a system of subsidized loans for wine companies

The successive economic crises created by Covid and the war in Ukraine are affecting the cash flow of French wine companies, which is why the French Government wants them to have financial relief.


French vineyard.

The succession of inflationary, health and climate crises is aggravating structural difficulties in certain wine-growing areas, creating a crisis situation for this important sector of the French economy. These tensions are affecting the cash flow of wine companies, as many of them have to repay bank loans incurred after the Covid-19 crisis or the war in Ukraine.

To help them repay their State Guaranteed Loan (PGE), the French Government will create a 2.5% subsidized loan system in early 2024 to allow winegrowers to spread their bank obligations and thus free up cash. This system, built with the wine sectors, will be supported by the de minimis agricultural regime. To this end, a call for applications from banking entities will be opened. This system complements the massive state support plan announced on February 6 by France, which provides for the implementation of crisis management measures.

Thus, the French Government will mobilize 200 million euros to start a crisis distillation campaign and 30 million euros, committing, according to needs, up to 38 million euros for the implementation of a health distillation plan, together with the Interprofessional Council of Bordeaux Wine (CIVB, by its acronym in French) and the New Aquitaine Region, mobilizing 19 and 10 million euros, respectively.

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