The French government securities repo facility

The repo (repurchase agreement) facility enables a public body, the Public Debt Fund (Caisse de la dette publique - CDP) to lend Primary Dealers French government securities that are difficult to obtain on the market in exchange for other French securities of equivalent value. These loans are temporary and yield interest.  The French government provides securities to the Fund. Under terms of the Budget Act, the government may issue securities directly to the Fund.

Primary Dealers apply to Agence France Trésor to use the repo facility.

The repo facility loans concern BTFs, OATs and index-linked securities. The purpose of the facility is to enhance the liquidity of such securities under specific circumstances.