Welcome to CADES website!
The site gathers all information you need to better understand its activity, its mechanisms, its financial and regulatory environment…
Since inception in 1996, CADES has the mission to redeem and amortize the deficits from the social security. To support its mission, CADES uses a diversified range of bonds issued in euros and in other currencies to meet the needs of international investors.
Each year, CADES defines an annual funding programme after the Social Security Financing Act (SSFA) was voted by the French Parliament. The SSFA sets the annual social debt amortization objective and establish, if any, the social debt to transfer to CADES for the year to come.
In order to reach its objectives, pay the interests to bearers of CADES’ bonds and pay off investors, CADES receives the following income: CRDS (1) at a rate of 0.5%, 0.60% of CSG (1) and 2.1 billion of euros paid by the FRR (1) until 2024. Since the Social Security Financing Act for 2016 was voted by the French Parliament, CADES' s sources of funding has been simplified with the 1.3 % levy on income by an additional 0.12 point of CSG.
2016 was marked by the transfer to CADES of the total outstanding amount of debt - €23.6 billion -included in article 9 of the Social Security Financing Act for 2011
During the year, CADES amortised an additional €14.4 billion, amounting to €124.7 billion of amortised social debt in 20 years, since 1996. But the amount of social debt left to amortise remains substantial, representing €135.8 billion at the end of 2016. In 2016, CADES also paid €2.4 billion to its investors.
This strong interest from financial markets enabled CADES to raise €13.7 billion of mid- and long-term debt in 2016, of which more than half was in US dollars. A major player on the international monetary markets, CADES also issued €38.3 billion of short-term debt, an issuance programme larger than expected, thanks to a decline in rates during the year (average rate of -0.69% Eonia-34 bps).
In total, CADES will have contributed to reducing French public debt by around 7 GDP points (including interest saved on the amortised debt).
The improvements announced in this year's French Social Security accounts will ultimately prevent the creation of new social debt in the future. In the meantime, though, we will continue to pursue our mission with vigour as there is still social debt CADES needs to amortise.
(1) CRDS: Contribution au Remboursement de la Dette Sociale - CSG: Contribution Sociale Généralisée - FRR: Fonds de Réserve des Retraites