France Faces New Political Crisis as Debt Rises
France faces a new political crisis. Its debt and borrowing costs keep rising.
The head of the International Monetary Fund warned France. The chief told France to “Get your house in order.” The warning was about surging bond yields. The warning also concerned France's rising borrowing costs.
Klear Note — Bond yields are returns investors receive for lending governments money. Rising yields can make new government borrowing more costly.
Key Terms 2
- International Monetary Fund A global group that helps countries with money problems.
- bond yields The interest a country pays on money it borrows by selling bonds.