The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Borrowers: The privatized French treasurer

Borrowers: Borrowers start to play a strategic game



How they do it

French treasurers have a reputation for being more adventurous in derivatives than their counterparts elsewhere in Europe. If that was so in the early 1990s it is less so today. The corporate derivatives scandals of 1994 and 1995 also had their impact in France. There is much more scrutiny and board-level control. But French treasurers believe their chief financial officers are more financially literate than elsewhere in Europe. So second and third generation derivatives are actively used by French treasurers, who believe they can understand and explain the risks they are running. But the days when Thomson-Batif, Rhône-Poulenc and Aérospatiale were major derivatives players are over. "The leveraged transactions are less and less frequent," says a Paris-based corporate banker. Some of the players - Pechiney, Rhône-Poulenc, Elf, Renault, and tobacco company Seita - have been privatized, putting "more focus on the quality and predictability of earnings", the banker says. Observes a treasurer at a privatized French company: "I've never seen in France a company being very active in exotic products when that company was in private hands.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree