Core Viewpoint - The article discusses AFL's efforts to achieve 0% risk-weighting for its debt securities, which would enhance financing conditions for French local governments and improve the attractiveness of AFL's financial products [1][7]. Group 1: Legislative Developments - The draft Simplification Bill includes an amendment that would allow local governments to guarantee AFL's creditors, marking a significant step towards achieving 0% risk-weighting for AFL's debt securities [1][5]. - Article 26 of the bill allows AFL shareholders to adapt their guarantee mechanisms to enable 0% risk-weighting for AFL or its issued securities [6]. Group 2: Historical Context and Regulatory Framework - The initiative for 0% risk-weighting began several years ago, with the ACPR's decision on June 21, 2024, recognizing French local government debt at 0% risk-weighting, although AFL could not benefit from this as a debt issuer [2][3]. - Despite the ACPR's decision, AFL's bonds are currently risk-weighted at 30% due to its A+ rating, following a downgrade of France's sovereign rating, while most of the bank's loans to local governments are risk-weighted at 0% [4]. Group 3: Ongoing Efforts and Commitment - AFL is in discussions with public authorities to align the risk-weighting of its debt securities with that of its shareholders, as part of the ongoing work related to the Simplification Bill [5]. - The recognition of 0% risk-weighting for local government debt is seen as a justified outcome of AFL's extensive collaboration with relevant authorities, reinforcing its commitment to support local public investment and financial sovereignty [8]. Group 4: Company Overview - AFL is the only French bank wholly owned by local governments, providing tailored financing for local investments while promoting sustainable finance [10]. - Since its inception in 2015, AFL has granted over €12 billion in loans, including €2 billion in 2025, and had 1,271 shareholders as of December 31, 2025 [10].