FRANCE said yesterday it would submit a plan to privatise struggling state-owned bank Credit Lyonnais to the European Commission later this week for approval but its cost would not be known until it was implemented.

The government, however, could face a stiff fight to win approval from Brussels as well as from rival banks for the rescue. The EU Commission has been pushing the bank to step up asset sales to comply with conditions it imposed in exchange for approval of the 1995 rescue, leading to speculation that it may sell its 53 per cent stake in Woodchester Investments. Credit Lyonnais is expected to have to unwind much of its retail banking network in western Europe outside France.