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CADES achieves funding programme in 2014
CADES, a fund established to redeem French social debt, has raised 17.5 billion euros of mid- and long-term debt since January 1 this year, enabling it to successfully achieve its funding programme planned for 2014.
The Asset 18 Dec 2014

CADES, a fund established to redeem French social debt, has raised 17.5 billion euros of mid- and long-term debt since January 1 this year, enabling it to successfully achieve its funding programme planned for 2014.

 

CADES chairman Patrice Ract Madoux notes the bonds that they've issued are consistently sought after in today's Eurozone environment - thanks to the confidence by the international investors.

 

In 2014, CADES plans to amortize 12.7 billion euros of additional social debt, in accordance with the objective set in the Social Security Financing Act (SSFA) for 2014. In total, Madoux says, CADES as at December 31 this year will have amortized 96.7 billion euros of social debt since its creation in 1996.

 

This reduction in French public debt is equivalent to 4% of GDP, and when the interest saving on the amortized debt is taken into account, the reduction equates to more than 5% of GDP.

 

In 2015, CADES will assume 10 billion euros of new social debt, which will include deficits from Caisse National d'Assurance Vieillesse (CNAV) and Fonds de Solidarete Vieillesse (FSV) as well as deficits from Caisse Nationale des Allocations Familiales (CNAF) and Caisse Nationale de l'Assurance Maladie (CNAM), health and family agencies, respectively.

 

This transfer of debt, for which the financing terms were already voted in the SSFA for 2011, will not change the lifespan of CADES in accordance with its organic law. "Next year, we will continue to pursue our mission and be closely involved in reducing French public debt," says Madoux.

 

CADES has assumed debt of 226.7 billion euros since its inception and collected income of 141.1 billion euros, of which 15 billion euros were in 2014. It paid 44.4 billion euros in interest since 1996, including 3.3 billion euros in 2014.

 

 

 

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