Economy: negative interest rate impossible in France

Economy: negative interest rate impossible in France

On the 20 Hours set, Jean-Paul Chapel deciphers the interest paid to borrowers in Belgium and Denmark.

Economy: negative interest rate impossible in France

Unfortunately, seeing your loan interest rate drop below zero will not happen in France. “It is the variable rates that allow that, and in France, there are hardly any variable rates, they are fixed rate loans. Above all, the Civil Code prohibits making loans at a rate below zero ”, specifies Jean-Paul Chapel on the France 2 set.

Historically low

However, interest rates have never been lower. “Today, we can borrow over 20 years at less than 2%”, notes the journalist. However, this situation would not be good for the economy. “This is bad news for those who lend money: individuals who deposit money in a livret A, retirees. […] Banks are also worried about their margins shrinking and their health threatened ”.