French Finance Minister Christine Lagarde said BNP Paribas plans to re-open shortly the three investment funds that it froze recently, following her meeting with the bank's chief executive Baudouin Prot.

BNP Paribas froze three asset-backed securities funds worth a total of €2 billion ($2.7 billion) – Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia – on 9 August, citing a "complete evaporation of liquidity in certain segments of the US securitisation market". The bank said on Monday it was aiming to re-open the funds as early as the end of August.

The announcement sent European markets tumbling and was seen as the first indication that the US credit crisis had spread across the Atlantic.

In an interview with radio station Europe 1, Ms Lagarde said: "I have just received the chief executive of BNP, who gave me the information I needed about the three funds they are managing. I know that they are currently working actively towards re-opening the three funds quickly."