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

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

The French State plans to raise 270,000 million euros of debt in the financial markets in 2023, a record after the 260,000 million euros in 2021 and 2022, announced French Treasury Agency On Monday on the sidelines of the presentation of next year’s budget. In 2023, the State must find 305.5 billion euros, compared to 306 in 2022. If this figure seems stable, however, France will no longer be able to count as much as in 2022 on the preventive cash created in 2020 to cushion health crises.

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

To find the money, the State will issue 270,000 million euros in the markets. Outstanding short-term securities (BTF) will also increase by €10 billion. Recalling that the State hasracked up a lot of cash in 2020 to deal with health issues and strict lockdowns that didn’t happenCyril Rousseau specified that 18,000 million euros will be extracted from this treasure in 2023 compared to almost 50,000 million this year.

Since the beginning of the year, the State has borrowed on average at a rate of 1.18% in the markets, while in 2021 it was negative (-0.05%), which therefore translates into an increase in the burden of the public debt. This, including that linked to the Covid-19 crisis, should increase in 2023, according to government budget data published this Monday on the occasion of the publication of the 2023 budget, approaching 60,000 million euros. This is how the first state budget, Education, should continue, which will amount to 60.2 billion euros in 2023.

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