France: Where is net debt a problem?

In France, corporate debt has increased considerably since the start of the COVID crisis (by EUR 150 billion). One may then be concerned about the financial fragility and solvency of French companies. But French companies’ cash reserves have increased by EUR 180 billion over the same period: there is no overall net debt problem. This calls for a more granular look, by size and by sector. We then see that the net debt or cash problem is not a macroeconomic problem and is concentrated among SMEs in a few sectors: retail, transport, a few services and above al l accommodation and restaurants . On average, we see no particular problem for intermediate-sized or large companies, wholesale trade, real estate services, information and communication technology, industry or construction.