Presentation of the ACPR’s latest activity report

On the occasion of the presentation of the activity report of the Prudential Control and Resolution Authority (ACPR) for 2021, Mr. Villeroy de Galhau, Governor of the Banque de France, drew up an inventory of the difficulties of the companies, more than 2 years after the start of the health crisis.

The wave of bankruptcies feared by some is not happening. At the end of April 2022, the cumulative number of defaults over one year remained nearly 43% lower than that observed in April 2019. Good news for the repayment of state-guaranteed loans (PGE), which should be honored more than 95% on time. Half of the PGEs granted in 2020 have also started to be reimbursed in 2021, the reimbursements of the other half having started in April 2022. Credit mediation, backed by the Banque de France, is moreover only very little solicits for restructuring requests relating to EMPs (less than 200 files out of 700,000 PGE in all…).

According to the governor of the BDF, France has the strongest banking and insurance sector in the euro zone. In particular, he believes that interest rates, which have been exceptionally accommodating for borrowers since 2015, will remain favorable and very bearable for the economy as a whole, compared to historical norms. This favorable economic context seems to be confirmed by the latest statistics presented by the National Council of Judicial Administrators and Judicial Agents (CNAJMJ).

149 billion PGE

It is now possible to take a step back on the PGE system. According to the latest figures published by the Ministry of the Economy, as of March 31, 2022, 791,717 PGEs have been granted, including 95% of VSEs/SMEs. From now on, in this 2nd quarter of 2022, only 500,600 PGEs are granted per week. It can thus be estimated that on 15 June, the 800,000 PGE mark could be crossed, for a total of approximately 149 billion euros, with a default rate below 3.1%.

More collective proceedings, but still below their historical level

Anna

2021

2022

Backup

775

319

Crisis exit procedure

15

17

Legal redress

6586

3251

Judicial liquidation

20162

9607

Total

27526

13237

Data from the CNAJMJ indicates that the opening of insolvency proceedings is up by 51% for the month of April 2022 compared to April 2021. This development confirms the upward trend in the number of insolvency proceedings observed at the start of the year. 2022 compared to 2021.

However, these opening figures remain despite everything very much lower than their historical level: thus, the openings of insolvency proceedings were 4,002 in April 2018 and 4,127 in April 2019, against 2,969 in April 2022, i.e. a decrease, respectively , 25.8% compared to 2018 and 28.1% compared to 2019. Finally, we note that in 2021, nearly 90% of direct judicial liquidations were without assets, without activity and without employees…

Anna

2021

2022

Ad-hoc mandate

3730

1395

Conciliation

1840

651

Total

5570

2046

Conversely, the opening of mandate and conciliation procedures fell in April 2022 compared to April 2021 (-5.7%).

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