26 September 2022: French State funding for 2023 and situation in 2022


  1. This morning, the French Budget Bill for 2023 was presented to the Council of Ministers. The total financing requirement will stand at €305.5bn, mainly consisting of €158.5bn to cover the deficit to be financed, down €14.1bn compared to the revised deficit for 2022, and €151.6bn to redeem medium- and long-term debt maturing in 2023, up €10.8bn compared to the figure in the 2022 Supplementary Budget Act (LFR).
  1. The financing requirement in 2023 will be met by (i) the medium- and long-term government debt issuance programme, net of buybacks, worth €270.0bn (ii) a €18.0bn drawdown of the Treasury’s account (iii) an increase in outstanding short-term government securities (BTFs) for €10.4bn (iv) €6.6bn of Covid debt redemption from la Caisse de la dette publique (v) and other cash resources of €0.5bn.
  1. State debt service is expected to stand at €51.7bn, including €0.9bn in interest charges connected with the partial absorption of SNCF Réseau debt.
  1. 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 €118.4bn, 0.8 billion less than in 2022.
  1. The detailed medium- and long-term financing programme for 2023 will be released in December 2022.


  2. At the beginning of the year 2022, the weighted average yield on medium- and long-term debt securities stood at 1.18%, compared to a historic low of -0.05% in 2021, an average of 1.26% from 2009 to 2020, and yields of 4.15% from 1998 to 2008.  
  3. The deficit to be financed in 2022 has been revised downwards to €172.6bn, compared to the amount of €178.4bn provided for in the 2022 LFR which was adopted in August 2022.
  4. The drawdown of the Treasury’s account stood at €49.8bn, decreasing by €2.4bn from the amount provided for in the 2022 LFR.
  5. “Other cash resources”, including the recording of net treasury premiums, are projected at -€5.7bn, compared to -€2.3bn in the 2022 LFR.
  6. Outstanding BTFs will remain stable as expected in the 2022 LFR.
  7. For 2022, issuance of medium- and long-term debt, net of buybacks, will remain flat at €260.0bn.
  8. State debt service is expected to stand at €51.2bn, versus €51.4bn in the 2022 LFR, as a result of the brief fall in rates observed during summer 2022.

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