31 August 2006: Introduction of a new short term BTF

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As part of the new cash management policy, Mr Thierry Breton, the French Minister of Economy, Finance and Industry, had announced the creation of a new very short term BTF, alike the US Cash Management Bill.

The Agence France Trésor will issue for the first time on Monday 4th September 2006 this short term BTF, with a maturity of Thursday 14 September 2006, for an amount of €2.5bn. This BTF will be issued by auction at 2:00pm Paris time and will be fungible with the existing line of same maturity. The settlement date is Tuesday 5th September 2006.

The short term BTF is a cash management instrument with maturities ranging from 2 to 6 weeks and a settlement in D+1. Issued through auctions, it complements the range of existing BTF so as to address short term cash needs.

The implementation of this instrument, decided in May 2006, is part of the public debt reduction policy initiated by Thierry Breton. This policy is threefold: control of public deficit, disposal of state-owned assets and management of the public administrations' cash position). This policy will result in a 2 percent reduction of the French public debt-to-GDP ratio in 2006.

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