Credit Agricole to pay back French state loans

Credit Agricole, joining other French banks, to pay back euro3 billion in emergency state aid

• On 9:57 am EDT, Wednesday October 14, 2009

PARIS (AP) -- French bank Credit Agricole said Wednesday it will pay off euro3 billion ($4.5 billion) in emergency government funding provided to bolster the banking sector last year.

Credit Agricole is the third leading French bank to say it is repaying the aid, after BNP Paribas and Societe Generale launched rights issues this month to pay off the money.

Credit Agricole said in a statement it will pay of the entirety of its state aid on Oct. 27, thanks to strengthening credit markets and the "financial solidity" of Groupe Credit Agricole.

Shares in the company rose 3.7 percent in Paris trading Wednesday afternoon to euro14.97.

The French government injected billions into French banks to keep them lending when credit markets dried up in the aftermath of the collapse of Lehman Brothers last year.

SocGen said it wants to raise euro4.8 billion, of which it intends to pay back euro3.4 billion to the government. BNP Paribas SA launched a euro4.3 billion rights issue to help reimburse euro5.1 billion in loans.