French Government Securities
France (to begin) to modernize the management of its public debt in 1985, and this effort now (to bear) fruit. The market in French government securities is today one of the most liquid in the world, second only to the market in US Treasury debt.
By virtue of its position in the French financial markets, the French Treasury (to initiate) a series of reforms over the past several years designed to open up those markets and make them more attractive, thus increasing the competitiveness of Paris as a financial center.
Today, French government debt issuance policy (to combine) three distinctive features, namely simplicity, liquidity, and transparency.
Simplicity.The structure of French government debt (to undergo) a profound transformation since 1980, and today the French Treasury mainly (to issue) three categories of standardized securities:
Fungible Treasury bonds with maturities of up to thirty years, which are the instruments that the government uses to raise long-term funds.
Fixed-rate Treasury notes paying annual interest with maturities of between two and five years.
Finally, fixed-rate short-term discount Treasury bills which (to have) a maximum maturity of one year.
Liquidity.Since 1986, the government (to give) priority to fungible issues, so that subsequent bond issues can be added to existing lines of stock having the same financial and fiscal characteristics.
Transparency.A number of organized procedures open to all investors (to keep) the market of French government debt transparent. With the exception of few specific operations arranged through traditional bank syndicates, the French Treasury (to place) its issues through competitive bidding.
Besides, the Treasury (to publish) a calendar of forthcoming auctions for future issues. Published at the start of the year, this provides investors with full and accurate information on the government's medium- and long-term borrowing program for the year.
Preparing for Economic and Monetary Union, the Treasury regularly (to issue) negotiable securities denominated in the Euro, and today the French government is one of the leading sovereign borrowers on the Euro market.
Another fast-growing market (to be) the market in stripped bonds, authorized in May 1991. These two are helping to increase the liquidity of the secondary market.
Words you may need:
public debtгосударственный долг
to bear fruitприносить плоды
by virtue ofблагодаря, в силу чего-л.
fungible bondsвзаимозаменяемые облигации
treasury notesказначейские облигации
discount treasury billsдисконтные казначейские векселя
competitive biddingконкурентные торги
stripped bonds«ободранные» облигации