1. This morning, the French Budget Bill for 2024 was presented to the Council of Ministers. The total financing requirement will stand at €299.7bn, down €10.6bn compared to the 2023 updated financing requirement, mainly consisting of (i) €144.5bn to cover the deficit to be financed, down €27.6bn compared to the updated 2023 deficit, and (ii) €160.2bn to redeem medium- and long-term debt maturing in 2024, up €10.6bn compared to 2023.
2. The financing requirement in 2024 will be met by (i) the medium- and long-term government debt issuance programme, net of buybacks, worth €285bn, (ii) an increase in outstanding short-term government securities (BTFs) for €7.7bn, (iii) €6.5bn of Covid debt redemption from the Caisse de la dette publique (iv) and other cash resources of €0.5bn.
3. State debt service is expected to stand at €52.2bn.
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 €129.5bn.
5. The detailed medium- and long-term financing programme for 2024 will be released in December 2023.
6. Since the beginning of 2023, the weighted average yield of medium- and long-term debt securities issued stands at 2.95%, compared to 1.43% in 2022, an average of 1.16% from 2009 to 2021, and yields of 4.15% from 1998 to 2008.
7. The deficit to be financed in 2023 has been revised upwards to €172.1 bn, compared to the amount of €164.9bn provided for in the 2023 initial Budget Act (LFI) promulgated in December 2022.
8. “Other cash resources” are projected at -€13.9bn, as a result of discounts at issuance, compared to +€0.5bn in the 2023 LFI.
9. The drawdown of the Treasury’s account stands at €27.6bn, against €24.5bn in the 2023 LFI.
10. Outstanding BTFs will increase by +€20bn, against +€3.3bn in the 2023 LFI.
11. For 2023, issuance of medium- and long-term debt, net of buybacks, will remain flat at €270.0bn.
12. State debt service is expected to stand at €55.5bn, versus €51.7bn in the 2023 LFI, mainly as a result of the rise in short-term interest rates.