(Updates with redemptions in third paragraph.)
Sept. 28 (Bloomberg) -- France plans to scale back its medium and long-term bond sales by 2.7 percent next year as President Nicolas Sarkozy seeks to squeeze the budget deficit.
The government plans to sell 179 billion euros ($244 billion) next year, down from 184 billion euros, Agence France Tresor said today in an e-mailed statement from Paris.
The issuance plan reflects the government’s commitment to cut the deficit to 81.8 billion euros, or 4.5 percent of gross domestic product, from 95.6 billion euros, or 5.7 percent of output this year. They also cover the redemption of 98.9 billion euros of outstanding bonds.
France has cut its outstanding Treasury bills by 4.4 billion euros in 2011 and will do so by another 1.1 billion euros next year. The government so far this year has bought back 18 billion euros of medium- and long-term debt maturing in 2012, the AFT said.
--Editor: Jennifer M. Freedman
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