Guarantee for advance funding for regular expenditures from the State Budget through the State Treasury in Vietnam

Guarantee for advance funding for regular expenditures from the State Budget through the State Treasury in Vietnam​ - Illustration.

At Clause 4, Article 7 of the Circular 62/2020/TT-BTC of the Ministry of Finance, regulations on advance payment guarantees for contracts with agreements on advance payment guarantees (for regular expenditures from the State Budget through the State Treasury) are specified as follows:

- Before the State Treasury makes a contract advance payment to the budget-using unit to advance the capital to the contractor or supplier, the budget-using unit sends the advance payment guarantee of the contractor or supplier to the State Treasury with a value equivalent to the advance amount.

- The value of the advance payment guarantee will be reduced corresponding to the amount of the advance recovered through each payment between the budget-using unit and the contractor or supplier. The budget-using unit is responsible for ensuring the value of the advance payment guarantee of the contractor or supplier corresponds to the remaining advance balance;

- When the advance payment guarantee expires, the unit must request the contractor or supplier to extend the advance payment guarantee and send it to the State Treasury, ensuring that the validity period of the advance payment guarantee is extended until the budget-using unit has recovered the full advance amount.

Details on the content can be found in Circular 62/2020/TT-BTC, which takes effect on August 6, 2020.

Le Vy

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