22 September 2021: French State funding for 2022 and situation in 2021


1.This morning, the Council of Ministers adopted the French Budget Bill for 2022. The total financing requirement will stand at €292.7bn, mainly consisting of €143.4bn to cover the deficit to be financed and €149.8 to redeem medium- and long-term debt maturing in 2022. Absorbing a part of SNCF Réseau debt will also increase the government’s 2022 debt redemptions by €3.1bn.

2.The financing requirement in 2022 will be met by (i) the medium- and long-term government debt issuance programme, net of buybacks, worth €260.0bn (ii) a €22.3bn drawdown of the Treasury’s account (iii) an increase in outstanding short-term government securities (BTFs) for €5.0bn (iv) €1.9bn of covid debt redemption from la Caisse de la dette publique (v) and other cash resources of €3.5bn, assuming issue premiums net of discounts worth €3.0bn.

3.State debt service is expected to stand at €38.4bn, including €0.8bn in interest charges connected with the partial absorption of SNCF Réseau debt.

4.The net year-on-year increase in the nominal value of negotiable State debt with maturities of one year or more will be capped at €113.7bn.

5.The detailed medium- and long-term financing programme for 2022 will be released in December 2021.


6.Since the beginning of 2021, France has benefitted from very favourable financing conditions. The weighted average yield on medium- and long-term debt securities stood at -0.06% for the first three quarters of the year, compared to a historic low of -0.13% in 2020, a rate of 0.11% in 2019 and an average of 1.52% from 2009 to 2018.      

7.The deficit to be financed in 2021 has been revised downwards to €197.6bn, compared to the amount of €220.1bn provided for in the 2021 Revised Budget Act (LFR) which was adopted in July 2021.

8.The drawdown of the Treasury’s account stood at €32.8bn, decreasing by €15.6bn from the amount provided in the 2021 LFR.

9.The “other cash resources” item, including the recording of net treasury premiums, has been revised upwards to €11.8bn, compared to €6.5bn provided for in the 2021 LFR.

10.Outstanding short-term government securities will increase by €5.0bn, a lower amount than the €19.5bn expected in the 2021 Supplementary Budget Act.

11.For 2021, issuance of medium- and long-term debt, net of buybacks, will remain flat at €260.0bn.

12.State debt service is expected to stand at €38.4bn, versus €36.8bn in the initial Budget Act, as a result of a rise in inflation which increases the service related to securities indexed to inflation.