The Federal Republic of Germany - Finance Agency (in the following Finance Agency) is the central service provider for the Federal Republic of Germany's borrowing and debt management. It was established on September 19, 2000, and is based in Frankfurt am Main, Germany's main financial center. The company, which is wholly-owned by the Federal Republic of Germany, represented by the Federal Ministry of Finance, performs functions in connection with budget and short-term liquidity funding which were previously divided between the Federal Ministry of Finance, the Deutsche Bundesbank and the Federal Securities Administration.
The Finance Agency currently has around 250 employees and acts as the interface between politics and the financial markets. For this reason, it has to address both the requirements of the Federal Government and the needs of market participants.
The instruments at the Agency's disposal on the one hand and its organizational and personnel structure on the other are designed to enable it to respond to the rapidly changing needs and requirements of the financial markets. The resulting synergies make it possible to achieve sustained improvements in the funding conditions for the Federal Republic of Germany, lower its interest costs in the medium term and optimise the risk structures in its debt portfolio.
The responsibilities of the Finance Agency include first and foremost services in connection with the issuance of German Government securities, borrowing in the form of German-type promissory notes (Schuldscheindarlehen), the use of derivative financial instruments and the execution of money market transactions (borrowings and lendings) to balance the Federal Republic of Germany's account at the Deutsche Bundesbank. Since August 1, 2006 the Finance Agency is also responsible for the management of private customer accounts and the federal debt register.
The Finance Agency's spectrum of services for the Federal Ministry of Finance also includes market analysis and the development of models for portfolio management, risk-monitoring and -management as well as investor, press and public relations for German Government securities.
Since the Parliament's budget law applies to the Federal Government's borrowing and its debt management activities, Finance Agency is subject to special public control - defined by the Federal Government Debt Management Act ("Bundesschuldenwesengesetz"). Budget experts representing the different parliamentary groups of the German Bundestag set up the so-called Federal Financing Committee to carry out this important task.
On the financial markets, the Finance Agency acts solely in the name and for the account of the Federal German Government. Its most important task is guaranteeing the solvency of the Federal Government at all times coupled with maintaining and extending the latter’s benchmark position as a Government bond issuer within the Eurozone.
Die Finanzagentur - Kreditaufnahme und Schuldenmanagement für den Bund (PDF, 935KB [in German language])
"Zahlungsfähig auch in Zukunft" Finance Agency's core responsibility (link to explanatory video on www.bundesregierung.de [in German language])