French debt costs set to be reduced by 2 billion euros thanks to low rates: minister

FILE PHOTO - Gerald Darmanin, French Minister of Public Action and Accounts, attends a news conference on tax collection reform at Bercy Finance Ministry in Paris

PARIS (Reuters) - France's borrowing costs are set to have been reduced by around 2 billion euros ($2.2 billion), compared to earlier forecasts, due to the low interest rates currently circulating within world financial markets, said French budget minister Gerald Darmanin.

"The state is borrowing at extremely low, even negative rates.....Over the course of the year, we're looking at around two billion euros worth of savings generated with regards to what had been forecast in the budget," Darmanin said in a tweet published late on Tuesday.

Euro zone bond yields have hit record lows this month on fears about a global recession, and on expectations of new stimulus measures from the European Central Bank (ECB) aimed at boosting growth in the euro zone economy.


(Reporting by Myriam Rivet; Editing by Marc Angrand/Sudip Kar-Gupta)