French gov' adopts 2018 budget bill

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French gov' adopts 2018 budget bill

The French government has adopted its budget bill for 2018 whose total financing requirement will stand at €203.3bn.

This will include €82.9bn to cover the deficit to be financed, €120.1bn to redeem medium- and long-term debt maturing in 2018 and €0.3bn for other cash requirements, detailed the Agence France Trésor, which manages French governement debt and treasury.

AFT said that the French state debt service is expected to stand at €41.2bn in 2018 against €41.8bn expected for the end of 2017 (versus €41.5bn in the initial 2017 French budget bill)

The institution explained that financing requirement next year will be met, among others, by the medium- and long-term issuance programme, net of buybacks, worth €195bn but also the resources from the active management of government shareholdings and earmarked for debt reduction for €1bn.

AFT specified that the deficit to be financed in 2017 has been revised to €76.5bn, compared to the amount of €69.3bn expected in the 2017 initial budget act.

Also 2017’s issuances of French state’s medium- and long-term debt – net of buybacks – will remain unchanged at €185bn. At the end of September, gross issuance of medium- and long-term debt stood at €173.6bn.

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