France Intends to Borrow Record €340 Billion as Covid-Era Debt Comes Due
The borrowing would be 28 billion euros more than this year and would fund maturing debt and the budget deficit, the AFT said.
- On Tuesday, the Agence France Trésor announced plans to borrow a record €340 billion in 2027, representing 28 billion euros more than this year to finance government spending and repay debt coming due.
- France faces these borrowing needs as its public deficit is forecast to hit 5.4 percent of GDP this year, exceeding the three percent limit mandated by international EU rules.
- Borrowing costs have surged, with French 10-year bonds trading at 4.8 percent on Tuesday, reaching levels last seen during the global financial crisis and straining government finances.
- Prime Minister Sébastien Lecornu vowed earlier this month to cut the deficit without austerity, yet faces pressure to reduce spending with presidential elections approaching in months.
- The AFT announcement arrives two days before the government presents its 2027 state budget, with officials planning to issue medium- and long-term bonds to raise the required funds.
16 Articles
16 Articles
France intends to borrow record €340 billion as Covid-era debt comes due
The French government will sell a record amount of bonds to investors next year as it faces a surge in Covid-era debt due for redemption and needing to be refinanced, the public debt management office said on Tuesday amid mounting concern about France's surging public deficit and borrowing rates.
France will borrow a record 339.7 billion euros in 2027
France will borrow a record 339.7 billion euros in 2027The country's need for financing will grow by 28 billion euros compared to 2026, the French treasury said.Next year, they plan to allocate 72.9 billion euros to service the national debt —...
France plans to borrow 340 billion euros on the markets in 2027, a new record. Between the refinancing of maturing debts and still high deficits, the government's emissions programme will have increased by 80 billion euros in just five years.
With interest rates rising sharply to 4.3%, the debt burden will rise to almost 73 billion euros according to Agence France Trésor The state plans to borrow a record amount
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