The activities of the Oesterreichische Bundesfinanzierungsagentur (Austrian Treasury) are legally based on the Austrian Federal Financing Act (Bundesgesetz vom 4. Dezember 1992 BGBl. 763/1992 über die Verwaltung und Koordination der Finanz- und sonstigen Bundesschulden).
Responsibilities of the Austrian Treasury
The responsibilities of the Oesterreichische Bundesfinanzierungsagentur (Austrian Treasury) are defined in Sec. 2 of the Federal Financing Act.
Sec. 2 (1) (Constitutional provision) On behalf and for the account of the Federation, the Austrian Treasury is to perform the following tasks under consideration of the aims defined in Sec. 2 Federal Budget Accounting Act:
1. to incur financial debts for the Federation,
2. to enter into swaps and other credit transactions, i.e., in particular agreements on the a) exchange of fixed rate amounts against floating rate amounts in the same currency and b) exchange of interest and/or redemption amounts in different currencies.
3. to restructure the credit transactions mentioned in nos. 1 and 2, including the public debt existing when this Act enters into force, swaps and other credit transactions if the currency risk or interest requirement is reduced or the redemption structure is improved,
4. to service the credit transactions under nos. 1 to 3, including the financial debt existing when this Act enters into force, swaps and other credit transactions,
5. to act as the central liquidity manager of the Federation according to Sec. 40 par. 1 and 3 Federal Budget Accounting Act,
6. (Remark: repealed by Federal Law Gazette I no. 124/1997)
7. to invest the funds of the Emergency Fund according to the Emergency Fund Act,
8. (Remark: Qualified as no longer applicable by Art. 2 Sec. 2 par. 3 no. 26, Federal Law Gazette I no. 2/2008)
9. to invest the funds for the housing water supply in accordance with Sec. 7 par. 4 Financial Burden Sharing Act 1993,
10. (Constitutional provision) to incur debts, to enter into swaps and to invest funds also for other entities and special accounts of the Federation upon request of the Federal Minister of Finance.
(2) Upon request of the Federal Minister of Finance, the Austrian Treasury shall issue an expert opinion in respect of other credit operations with effects on the Federal budget, as well as with regard to risk management and finance controlling within the Federation. Upon request of the Federal Minister of Finance, all other units of the State Sector (S. 13) in accordance with the European System of National and Regional Accounts (ESA), and legal entities which in each case are in predominantly direct or indirect possession of these units, or of the Federation, or in each case are administered or supervised by bodies appointed by them, may arrange to be advised by the Austrian Treasury in connection with financial instruments, risk management, and finance controlling.
(3) The Austrian Treasury is to perform credit transactions according to Sec. 5 par. 1 Inland Water Navigation Fund Act, Federal Law Gazette no. 69/2000.
(4) Upon request of the Federal Minister of Finance, the Austrian Treasury shall, on behalf and for the account of the Federation, and respecting the aims in accordance with Sec. 2 of the Federal Budget Accounting Act 2013 (BHG 2013), Federal Law Gazette I No. 139/2009, for legal entities of the Sector 1314 (Social Security) in accordance with the European System of National and Regional Accounts (ESA) as well as for the Provincial States, against reimbursement of costs
1. carry out and conclude credit operations and grant loans from these resources to these legal entities and the Provincial States,
2. conclude currency exchange contracts, in order then to enter into contracts with these legal entities and Provincial States, in order to retroactively alter obligations from credit operations of these Provincial States and legal entities by way of transfer of commitment of the claims and obligations arising from these currency exchange contracts,
3. carry out and conclude assessments of cash resources of these legal entities and Provincial States,
4. establish cash pooling in support of the liquidity control of these legal entities and Provincial States and offer this service to them,
5. provide risk management services, including monitoring and reporting.
The decision as to whether the Provincial States or legal entities approach the Federation in respect of the matters in accordance with Nos 1 to 5 rests with them. In addition, upon request of the Federal Minister of Finance, the Austrian Treasury may, on behalf and for the account of the Federation in respect of the contracts referred to in Nos 1 to 4, agree with these legal entities and Provincial States on the arrangement of guarantees.
(4a) A precondition for a request in accordance with Par. 4, Nos 1 to 4, is the annual provision of proof by the legal entities or the Provincial States with regard to the maintaining of the principles of Sec. 2a. This proof shall be deemed to have been provided if a corresponding ruling by the Regional Assembly or a confirmation by the Provincial Audit Office is presented in the respective province financial statements. For legal entities, a corresponding auditor’s certificate in the current annual statements of accounts in each case, or a published decision by the executive body with the consent of the supervisory body is required. Furthermore, the estimate of expenditure by a province is to contain a certification to the effect that the principles under Sec. 2a are being respected. Likewise, for already existing financing arrangements, annual proofs are to be provided in the form set forth heretofore.
(5) The Austrian Treasury can also carry out the administration and settlement of credit transactions, the handling of money market transactions, the disposition of accounts, payment transactions or other financial transactions on behalf and for the account of other legal entities in which the Federation has a majority stake or for the credit transactions of which the Federation - based on a legal authorisation in the Federal Finance Act or in a special Federal Act according to Sec. 42 par. 5 Federal Constitution Act - may assume the liability in accordance with Sec. 1357 General Civil Code or in the form of guarantees.
(6) The Austrian Treasury shall, on behalf of and for the account of the Federation, carry out the funding of the special endowment of the Research Billion.
(7) On behalf and for the account of the Federation, the Austrian Treasury is to perform the functions of an auctioneer according to Article 23 of the Regulation (EU) No 1031/2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowances trading within the Community against reimbursement of costs through the Federal Ministry of Finance.