France plans to borrow 270 billion euros on the markets in 2023, a record

by time news

The renewal of previous loans which expire next year weighs heavily on the country’s debt.

The French state intends to raise 270 billion euros of debt on the financial markets in 2023, a record after 260 billion euros in 2021 and 2022, announced Agence France Trésor on Monday on the sidelines of the presentation of the budget of the French government. next year. In 2023, the State must find 305.5 billion euros, against 306 in 2022. If this figure looks stable, France will however no longer be able to count as much as in 2022 on the precautionary cash created in 2020 to cushion health shocks.

The fall in the state deficit (which is to be reduced from 172.6 in 2022 to 158.5 billion euros in 2023), is also offset by the need to renew previous loans which will mature in 2023. “In 2023, as usual, we are repaying two-year, five-year and ten-year debt securities. In addition, a 15-year title and a 30-year title are reimbursed“, detailed Cyril Rousseau, director general of Agence France Trésor, during a press briefing.

To find the money, the State will therefore issue 270 billion euros on the markets. Outstanding short-term securities (BTF) will also increase by 10 billion euros. Recalling that the State hadaccumulated a lot of cash in 2020 to deal with health shocks and hard lockdowns that didn’t happen“, Cyril Rousseau specified that 18 billion euros will be drawn from this treasury in 2023 against nearly 50 billion this year.

Since the beginning of the year, the State has borrowed on average at a rate of 1.18% on the markets while it was negative (-0.05%) in 2021, which therefore translates into an increase of the public debt burden. This, including that linked to the Covid-19 crisis, should increase in 2023, according to the government’s budgetary details published on Monday on the occasion of the publication of the 2023 budget, approaching 60 billion euros. It should thus follow the first state budget, Education, which will amount to 60.2 billion euros in 2023.

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