"To allow the CIF group to respect its overall commitments, the state decided to respond favourably to its request to grant it a guarantee," Finance Minister Pierre Moscovici said in a statement.

The guarantee to the lender, which faced the expiration of a 1.75 billion euro ($2.21 billion) covered bond in early October, is subject to approval by the European Commission, Moscovici said.

The government said it had named Bernard Sevez to replace the company's existing chief executive.