France says Greek rescue to raise debt 15 bln euros by 2014

22nd July 2011, Comments 0 comments

France's debt will rise by about 15 billion euros by 2014 because of its contribution to a eurozone bailout for Greece, Prime Minister Francois Fillon said on Friday the day after the rescue deal was agreed.

"French involvement can be estimated at 15 billion (euros or $21.6 billion) by 2014," as an "indirect result" of the agreement, Fillon said after a meeting of top politicians at his office to discuss the Brussels summit's outcome.

French public debt at the end of the second quarter of 2011 was 1,646 billion euros, up 55 billion euros on the previous quarter and representing about 84.5 percent of gross domestic product.

Eurozone leaders and private creditors agreed on Thursday to give Greece a new 159-billion-euro bailout, risking a potential default to prevent the debt crisis from spreading worldwide.

"These decisions have no direct cost for our public finances," Fillon said. "They have an indirect cost because we're going to take part through guarantees on loans that will be given by the European stability fund to Greece," he said.

Fillon said France "must achieve" its target of bringing it deficit below three percent by 2013.

"The undertakings we've made must be respected," he said.

© 2011 AFP

0 Comments To This Article