17 July 1997: Redenomination of French government

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The Ministry of the Economy, Finance and Industry has recently announced the methodology adopted for the redenomination of the French government negotiable debt as of 4 January 1999.

1. French government debt will be redenominated as follows: amounts of bonds held in French Francs will be multiplied by the conversion rate to the euro and then rounded down to the nearest euro. To take the remainder into account, holders will receive a compensatory cash payment, valued at market price, of less than one euro per issue held by each account.
2. Redenomination will apply automatically to the whole stock of negociable debt during the weekend beginning on 1 January 1999. As of 4 January 1999, the outstanding debt, previously denominated in French Francs and ecu, will be fongible with the newly issued debt in euro, and they will both be traded in the same way.
3. Operational details are now being finalised in cooperation with the parties concerned, in order to insure the adequate preparation of information and accounting systems.
4. The Ministry of the Economy, Finance and Industry also confirmed that the first auction of Treasury bills in euro will take place on 4 January 1999, and announced that an international conference will be held in Paris, on 3 and 4 December 1997, on "French Government Securities and the Euro", to inform investors on the issuing policy of the French Republic after the changeover to the euro. This event will be organised jointly by the French Treasury and the French debt primary dealers' association (ASVT).