PARIS (MNI) – France has revised down slightly its medium- and
long-term net borrowing target for next year to E178 billion from E179
billion projected in September, the debt agency Agence France Tresor
said Tuesday.
Issuance of short-term bills will be reduced by E4.4 billion (vs
-E4.2 billion previously).
The borrowing will cover an expected budget deficit of E78.7
billion, the repayment of E97.9 billion in medium- and long-term debt
maturing next year and E1.3 billion in debts taken over by the
government.
This year, gross medium- and long-term issuance amounted to E207.8
billion, including E90.2 billion in medium-term BTANs, E97.6 billion in
longer-term OATs and E20.0 billion worth of inflation-indexed bonds.
As usual, some 10% of the medium- and long-term debt will be issued
next year in the form of inflation-indexed bonds, the AFT said.
The targets are net of eventual bond buy-backs. This year the
agency repurchased E23.8 billion before maturity, which will reduce next
year’s reimbursements by E19.3 billion and those in 2013 by E4.4
billion. Buy-backs this year will depend on market conditions, the AFT
said.
Two new benchmark lines of five-year maturity, two of ten-year
maturity, as well as a new two-year line will be launched this year, the
agency said.
AFT said it will also consider two new longer-term lines, notably
of 15-year and 30-year maturities, if demand exists. Two new indexed
lines could also be launched: a five-year OATei linked to Eurozone HICP
and a ten-year OATi linked to domestic CPI. A new floating-rate OAT TEC
10) indexed to yields on 10-year bonds might also be issued.
The auction calendar remains unchanged, with longer-term OATs sold
on the first Thursday of each month and medium-term BTANs (or outdated
OATs) on the third Thursday, except for August and December, when only
one auction will be held. Linkers will be also sold on the third
Thursday, except for August and December.
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