The rise in interest rates is upsetting the conditions of access to credit for households, but also for local authorities. At the heart of the debate between the Ministry of the Economy and the banking profession: the usury rate, the maximum rate at which banks can lend. Because of its calculation formula, based on the rates of the previous quarter, it is currently too low for a fringe of borrowers who find themselves driven out of the market.

Local authorities in particular are sounding the alarm about their difficulties in obtaining a fixed-rate loan. While the painful memory of the "toxic loans" granted by Dexia is still vivid, some of them fear that these brakes will lead banks to offer them structured or variable rate loans. It's a contextual problem," a local banker recently told L'Agefi. Local authorities have very little risk of not repaying their loans, but banks cannot technically grant them loans because the usury rate is too low. This problem could therefore delay investments by local authorities until the rate, as calculated today, gradually rises.

An unchanged calculation formula

As the new calculation of usury rates approaches, which will be published on July 1, Bercy has decided: there is no question of changing the formula , which is based on the average of the previous quarter's rates, increased by one third. " This method of calculation has been the subject of consultations in the past and it is protective for borrowers," said the minister's entourage.

It is not question either that the Bank of France suspends the application of this rate during six months, as the law authorizes it. For the ministry, the "exceptional circumstances" required to derogate from this rate are not met. " We have no data at this stage that indicates a systemic problem of access to credit for individuals or for communities," said Bercy.

A new, more refined grid for local authorities

On the other hand, the ministry is preparing to revise the grid for calculating usury rates for local authorities in order to bring it into line with that of property loans to individuals. A decree, which has just been submitted to the opinion of the Consultative Committee of the financial legislation and regulation (CCLRF), should be published in the week, he indicates to L'Agefi.

Today, the usury rates of "legal entities not engaged in industrial, commercial, artisanal or agricultural activities", i.e. local authorities, are only calculated for maturities of less than or more than two years. It is therefore a question of"refining this grid" to "better adjust the usury rates to the reality of the market", explains Bercy. In concrete terms, this grid will contain four types of rates: for loans of less than 2 years, 2 to 10 years, 10 to 20 years and more than 20 years. The Ministry of the Economy hopes that this will "contribute to reinforcing access to credit for local authorities" without affecting the calculation formula.

Source: www.agefi.fr