The France will take over 50 years - March 11, 2010
At a time when the markets are worried about the debt of states, France is the luxury of borrowing on … 50 years! The Agence France Tr?sor (AFT) announced Tuesday its intention to create a new OAT which expires in 2060. This obligation will be sold by a syndicate of banks, whose leaders are Barclays Capital, BNP Paribas, Deutsche Bank, JP Morgan and Societe Generale. The characteristics of this loan are not yet defined, but the AFT is a capital raising of between 3 and 5 billion euros. The rate at which they borrow will be determined based on investor demand. The comparisons are quite favorable: the only requirement to 50 years issued by France (five years ago) is currently trading at a rate around 4.10% easy payday loans .By comparison, in 2007 – before the subprime crisis – the France borrowed at 4.50% over 10 years.
The initiative Bercy indicates that for the moment the French debt is not affected by the difficulties encountered by Greece. Since January, France has borrowed 50.7 billion euros without any difficulty, which represents over a quarter of its projected emissions over the entire year. This positive trend should continue unless the credit ratings of the Hexagon, currently "AAA" is broken. The agency Fitch Ratings on Tuesday urged the United Kingdom, France and Spain to "state programs more credible" to consolidate their budgets, "given the pace of deterioration in public finances."