French Minister of the Economy, Finances and Industry Francois Baroin approved Tuesday the indicative medium and long-term financing program of borrowing 178 billion euros (232 billion U.S. dollars) next year, the Agence France Tresor (AFT) said in a statement.
“In 2012, the State budget deficit will amount to 78.7 billion euros (103 billion dollars), the redemptions of long-and medium-term debt will amount to 97.9 billion euros (128 billion dollars) and the redemptions of other debts will amount to 1.3 billion euros (1.7 billion dollars),” the statement said.
“The State funding requirement will therefore come to 177.9 billion euros (233 billion dollars),” the statement added.
French CPI and eurozone HICP index-linked bonds will account for around 10 percent of medium-and long-term debt issuances. As in previous years, AFT said it will adjust issuances to match demand and to ensure the liquidity of the bonds.
According to AFT, it conducted securities buybacks for 23.8 billion euros (31.2 billion dollars) in 2011.
With 19.3 billion euros (25.3 billion dollars) of debts maturing in 2012 and 4.4 billion euros (5.8 billion dollars) of debts maturing in 2013, AFT indicated that throughout 2012 and depending on market conditions, the agency will implement buybacks of securities falling due in the following years.
France is now the most exposed of the triple A euro member states to a further intensification of the eurozone sovereign debt crisis, according to Fitch Ratings.