2023-12-13 20:02:40
By Julie Ruiz
Published 6 hours ago, Updated 13 minutes ago
The rate includes all issues, short or long term, issued until December 11 according to figures from the AFT, the organization attached to Bercy responsible for placing France’s debt on the financial markets. Florence Piot / stock.adobe.com
This surge is the direct consequence of the policy pursued by the European Central Bank, which has massively raised its key rates since the summer of 2022.
A few weeks before the Olympic Games, France is already breaking its own records… in debt. This year, the amount of public debt has indeed exceeded the 3,000 billion mark. This news is all the more unpleasant since borrowing is expensive. This year, the average interest rate on France’s issues to finance this debt rose to 3.15%. A level that had not been reached since the financial crisis of 2008, according to a publication by Agence France Trésor (AFT). As a reminder, this average rate barely exceeded 1% last year and was even negative (- 0.28%), in 2021. Between 2009 and 2020, the average rate was around 0.6%.
This sudden rise in rates can be attributed to the inflationary crisis that Europe has been going through since last year and the strategy put in place by the European Central Bank (ECB) to deal with it. The institution has massively increased its key rates since the summer of 2022. Currently they are capping…
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#Borrowing #finance #debt #costs #France