FRENCH DEBT FELL TO 398.2 BILLION FRANCS END-1986
French medium and long-term debt fell to
398.2 billion francs at end-1986 from 419.6 billion at
end-September and 464.7 billion at end-1985, the Finance
Ministry said.
    The 66.5 billion franc reduction over the full year mainly
reflected a 44.8 billion difference between debt redemption and
new foreign borrowings, it said.
    The 21.4 billion franc reduction in the fourth quarter
mainly reflected an 11.4 billion franc difference between
redemptions and new borrowing, the ministry added.
    The balance reflected revisions to the previous figures,
and the impact of the currency fluctuations on the French franc
value of foreign currency denominated borrowings, it said.
    Expressed in dollar terms, medium and long-term debt fell
to 62.7 billion dlrs at end-1986 from 63.4 billion at
end-September.
    The ministry said although the dollar's depreciation
favoured a reduction in foreign debt, this was largely offset
by the appreciation of other currencies in which 63 pct of
French medium and long term debts were denominated at end-1986.
    While the dollar remained the main borrowing currency,
accounting for 37 pct of medium and long-term debt, the mark
accounted for 11.5 pct, the European Currency Unit 10.8 pct,
the yen 9.4 pct, the Eurofranc 8.7 pct, the Swiss franc 7.3
pct, the Guilder 4.6 pct, sterling 3.7 pct and seven pct
others.
    Taking into account external lending, net foreign debt fell
to 81.5 billion francs at end-1986 from 106.7 billion at
end-September and 153.7 billion at end-1985.
    External lending, comprising export credits of more than
one year maturity, and public sector foreign loans, were
estimated at about 316.7 billion francs at end-1986 against
312.9 mln at end-September.
    Total foreign medium and long-term debt included seven
billion francs of direct state debt at end 1986, reduced from
15.6 billion three months earlier, the ministry said.
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