AGENCE FRANCE TRESOR is tasked with managing the government debt and cash positions under the most secure conditions in the interest of the taxpayer.
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Managing Government cash flows
Agence France Trésor is responsible for the day-to-day management of a single Banque de France account that centralises all of the State’s financial flows, along with those of “Treasury correspondents”, such as local authorities and government-funded institutions.

Guaranteeing financial continuity
Agence France Trésor is responsible for managing the government’s cash holdings. This means ensuring that the Government has the resources it needs to honour its financial commitments at all times and under all circumstances. This requirement falls within the framework set by Article 123 of the Treaty on the Functioning of the European Union (TFEU), which prohibits euro area central banks from granting advances to government agencies. Consequently, the Treasury’s single account with the Banque de France must show a credit balance at the close of each business day.

Centralising public cash flows
Treasury correspondents are entities that have a legal, regulatory or contractual obligation to hold an account with the Treasury. Funds deposited by Treasury correspondents are a stable source of cash for the Government, limiting the need for borrowing. AFT supervises the daily flows of public cash into and out of the Treasury’s single Banque de France account instigated by the government’s central and devolved agencies, and by Treasury correspondents.

Using the Government’s and treasury correspondents’ cash holdings in taxpayers’ best interest
AFT invests any daily cash surpluses on the Treasury’s single account on the interbank market to optimise the cost for the government’s cash holdings for taxpayers. These investments may include unsecured loans or repurchase agreements involving government securities. To ensure optimum security for these investments, AFT draws up very short-term forecasts each evening for the next day, tracking expenditure and income flows all day long. AFT offers investments to its counterparties several times a day, depending on market demand.

AFT’s cash management performance is measured by three indicators. The targets set and results achieved are presented to Parliament every year. The indicators are:
  • the Banque de France account balance at the end of the day,
  • the return on investments of cash surpluses,
  • and the prior notice given by Treasury correspondents of their financial transactions that will have an impact on the account.

MAJ : 14 April 2017