10 July 2002: Revised 2002 financing programme

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Consistent with the draft Finance Law released today by the Minister for the Economy, Finance and Industry and the deputy minister of the Budget, and taking into account the budget deficit increase of EUR15.4bn this year from the previous projection, a new funding programme is necessary, concerning particularly the planned BTF (Treasury Bills) issues. The following table presents the new issues planned, compared with those envisaged in the previous programme as released on December 17, 2001. In this respect, Agency France Tresor will have to supplement the amount of BTF in 2002 by EUR12bn, over the EUR13bn already announced last December, to cause an increase of EUR25bn for the whole year 2002. The medium term (BTAN, Treasury notes) and long term (OAT, bonds) funding programme will be implemented according along the lines disclosed on December 17, 2001.

Financing requirements (EUR billions) 2002
(News release 17/12/2001)
2002
(revised 10/07/2002)
Long term debt redemption 14.7 14.6
(note 1)
Medium term debt redemption 45.0 44.7
(note 2)
Other government commitments 1.5 2.8 (=1.5+1.3)
(note 3)
Second leg of the work bonus - 1.2
(note 4)
Budget deficit of 2002 Initial Budget Act 30.4 30.4
Worsening of the deficit (mini-budget) - 15.4
Total financing requirements 91.6 109.1
Funding sources 2002
Net medium and long-term funding (OAT and BTAN) 85.0 85.0
Net BTF outstanding (yearend) 13 25
Change in Treasury correspondents' deposits -6.4 -0.9
(note 5)
Change in the current account at Banque de France 0 0
Total funding sources 91.6 109.1
1 EUR0.1bn worth of buybacks of OATs maturing in 2002 was carried out at the end of 2001. They are not included in the funding programme as published in the news release of December 17, 2001.
2 EUR0.3bn worth of buybacks of BTAN maturing in 2002 was carried out at the end of 2001. They are not included in the funding programme as published in the news release of December 17, 2001.
3 The item "Other government commitments" has increased by EUR 1.3bn as a result of the anticipated repayment by the State of the sums owed to companies in relation to a one-month shift in VAT payment. This cash flow does not translate into a budget item.
4 The second leg of the work bonus, representing EUR 1.2bn, is part of the 2001 budget deficit. However, since it was paid in January 2002, it introduces a new entry into the 2002 funding requirement.
5 The item "Change in Treasury correspondents' deposits", as filled in the December 2001 programme, only booked a EUR6.4bn decrease of the deposits by La Poste. However, this line has been modified by two elements:
- EPFR deposited EUR1.7bn on an interest-paying account with the Treasury in May, 2002 and
- Fonds de reserve des retraites (FRR) has brought a complementary resource representing EUR3.8bn over one year.