PARIS Dec 20 France will cut its medium- and
long-term debt issuance next year to 169 billion euros, from 178
billion euros in 2012, thanks to a lower budget deficit and debt
buybacks, the debt management agency said on Thursday.
Agence France Tresor (AFT) said it had trimmed its issuance
plans for 2013 by 1 billion euros from a September forecast
thanks to debt buybacks, which allowed it to lower the cost of
debt redemptions next year.
AFT chief Philippe Mills said the agency had repurchased
23.5 billion euros of debt this year. That reduced the
redemptions of debt maturing in 2013 by 18 billion euros and by
more than 5 billion euros in 2014, he said.
Mills said the cost financing in 2012 had fallen to a record
low, thanks in part to the the action of ECB and investors
confidence in France. The average maturity of French debt
remained stable at around 7 years, Mills said.
"In 2013, the most likely scenario from market analysts for
interest rates is one of a continued normalisation of the
situation in Europe," Mills said.
"The rates of countries regarded as fragile are going to
decrease and the rates for core countries will, in the case of
Germany increase, and in the case of France probably remain
stable or increase slightly," he said.