France plans to borrow 184 bln euros in 2011

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France plans to limit its medium- and long-term net borrowing to 184 billion euros in 2011, a 13 percent decline from this year, the French debt agency said Tuesday.

The AFT French governmental debt management agency said Finance Minister Christine Lagarde had limited 2011 medium- and long-term net borrowing to 184 billion euros, down from 210.7 billion euros this year.

The French government had originally intended to keep its borrowing to 188 billion euros in 2010 but overshot the mark.

The 2011 borrowing figure includes funding the planned 91.6 billion euro government deficit, and redemption of 94.8 billion euros in debt coming due, and another 600 million in debts assumed by the state.

In addition to the 184 billion euros, another 2.9 billion euros is to be covered by annulation of debt.

The AFT said it had temporarily suspended its policy introduced in 2001 of trying to reduce the maturity of French government debt due to market conditions.

It added it would consider offering other maturities, such as 15 and 30 years, depending on market interest.

© 2010 AFP

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