France intends to borrow record €340 billion as Covid-era debt comes due
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The French government will sell a record amount of bonds to investors next year as it faces a surge in Covid-era debt due for redemption and needing to be refinanced, the public debt management office said on Tuesday amid mounting concern about France's surging public deficit and borrowing rates.
The French Finance Ministry building in the Bercy neigbourhood of Paris, on August 17, 2026. © Thomas Samson, AFP
France indicated Tuesday it plans to borrow a record amount on the bond market next year, even as worries about the government's spending has seen borrowing rates hit levels unseen since the global financial crisis .
The AFT agency that manages the government's borrowing on debt markets said it plans to borrow 340 billion euros ($385 billion) in 2027, some 28 billion euros more than this year, to help finance government spending and repay debt coming due.
AFT, in its announcement two days ahead of the presentation of the government's 2027 budget, said it plans to issue a mixture of medium- and long-term bonds to raise the funds.
The French government is forecasting an interest rate of 4.3 percent for its 10-year bonds in 2027.
On Tuesday, French 10-year bonds were trading on the secondary market at 4.8 percent.
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