Asia and Middle East scoop up French debt
AFP · 5 Oct 2012, 14:41
Published: 05 Oct 2012 14:41 GMT+02:00
- France begins debate on EU austerity treaty (03 Oct 12)
- Hollande demands strict rules on EU bank union (02 Oct 12)
- France and Germany drift over eurozone crisis (21 Sep 12)
"This year, half of the net debt purchasers come from Asia and the Middle East compared to 33% in 2011 and 20% in 2010," said AFT head Philippe Mills in an interview on the Next Finance website.
Only 30% came from the eurozone, with French entities, in particular insurance companies, well represented.
Mills also noted that commercial banks had drastically reduced their purchases of French debt during the eurozone debt crisis to 10% in 2012.
However Mills said he did not see any signs of re-domestication of the French debt market.
France's stock of debt is still mostly held by foreigners -- 62.7% at the end of June -- although this figure has been declining for a year.
France has enjoyed historically low medium- and long-term borrowing rates, with short-term rates sliding into negative territory this year as investors flee the debt of weaker eurozone countries for the likes of Germany and France.