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BNP Paribas to repay state early

BNP Paribas to repay state early - commercial mortgages
Date: 9/29/2009

The French bank BNP Paribas has announced that it is to repay the emergency funding it received from the government earlier than expected.

The French state bought 5.1bn euros ($7.5bn; £4.7bn) in non-voting BNP shares on 31 March 2008.

The bank said it would pay that money back in October, together with 226m euros in accrued dividends.

It said state intervention had "fully achieved its objectives" and it would be raising its capital by 4.3bn euros.

Tax havens

"Thanks to the state's intervention, French banks have played an important role in helping the economy and their customers during the crisis," said chief executive Baudoin Prot.

The announcement came the day after Mr Prot announced that he would be closing down branches of the bank in countries that feature on the OECD's "grey list" of tax-havens.

A BNP spokesperson said that the only two such countries in which the bank operates are Panama and the Bahamas.

World leaders intensified their campaign against tax havens at the G20 summit in London earlier this year.

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