Cash Management Agreement Francais

To this end, AFT is constantly updating its cash flow forecasts for the coming year. At the end of each day, it forecasts cash flow for the next day. Throughout the day, the AFT monitors spending and revenue in real time. All government cash flows (expenses and revenues) as well as those of local authorities and state-funded institutions (known as «cash correspondents») are centralized in a single account with the Bank of France. Agence France Trésor is responsible for the day-to-day management of this account. The AFT maximizes the cost of cash to taxpayers by ensuring that an adequate cash balance, including a safety cushion, is available to cover expected expenses. Using cash in the best interest of taxpayers The cash management strategy, which aims to ensure optimal security for the execution of payments, means that the cash account is generally in surplus. AFT invests this surplus every day in the interbank market to reduce the cost of excess cash. These investments may take the form of unsecured loans or securities repurchase contracts.

AFT offers several investments to its counterparties several times a day, depending on market demand. Centralization prevents the creation of liquidity and reduces the total debt of the state. This has a positive effect on France`s market returns and reduces the state`s dependence on market financing. Correspondent Treasury deposits are a source of bar for the state. These deposits reduce the government`s credit requirements. Cash Management, which meets the highest international standards In addition to the state, the vast majority of French public sector organizations, including local authorities, local and national public bodies and hospitals, are required to deposit their cash with the Ministry of Finance. Some companies also deposit some or all of the cash as part of the agreements with the Department of Finance. This is the case for the European Union, which deposits part of its funds with the French Ministry of Finance.

All companies that deposit their money with the Treasury are called «Correspondent Treasuries.» Promoting the centralization of public treasuries Agence France Trésor is responsible for the management of the state`s cash holdings. This means ensuring that the government has the financial means to meet its obligations at all times, regardless of the circumstances. France has set up a pooling system called «centralisation» in order to optimize the management of public coffers. The centralization of public liquidity is a proven method recommended by international institutions, including the World Bank and the IMF. France has a sophisticated system based on the Treasury account. In accordance with the cash management agreement, the Cash Manager has agreed to provide cash management services related to the issuer`s business. This need stems from Article 123 of the Treaty on the Functioning of the European Union (TFUE). This article prohibits the Bank of France, which takes the state`s account, from granting overdrafts to the state.