France Unlikely to Need IMF Bailout, Capital Economics Says -- Market Talk

Dow Jones
2025/08/28

0641 GMT - France's public finances aren't in a great state but the country isn't likely to resort to a bailout by the International Monetary Fund, economists at Capital Economics say. With the country's minority government facing collapse and the budget deficit still running way over target, French finance minister Eric Lombard warned this week that a recourse to the IMF for financial help was "a risk that is in front of us." But for now, yields on French government bonds aren't spiking, and there are no signs of liquidity problems in the country's sovereign-debt market, Capital Economics says. Even if France were to need financial aid, it would be more likely to turn to options such as the European Stability Mechanism or the European Central Bank, the economists say.(joshua.kirby@wsj.com; @joshualeokirby)

 

(END) Dow Jones Newswires

August 28, 2025 02:41 ET (06:41 GMT)

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