OUSTER OF MADELIN SEEN BURDENING FRENCH FRANC

OUSTER OF MADELIN SEEN BURDENING FRENCH FRANC

The forced departure of French Finance Minister Alain Madelin is expected to weigh heavily on the French franc and French interest-rate instruments in the near term, analysts and traders said.

''This comes at a very bad time, with the French government preparing its 1996 budget. The market had been pricing in a good result . . . a reduction of the budget deficit," said John Rothfield, an international economist at NationsBanc/CRT in Chicago.He said Mr. Madelin was likely pushing for more spending cuts than fellow members in the administration wanted.

One trader with a major European bank in New York said European markets are likely to sell the French franc heavily against the deutsche mark when they resume trading today.