Circular 314/2016/TT-BTC: Regulation on State Treasury Management

11:17, 11/07/2024

On November 28, 2016, the Minister of Finance issued Circular 314/2016/TT-BTC guiding certain provisions of Decree 24/2016/ND-CP dated April 05, 2016 of the Government of Vietnam stipulating policies on the management of state treasury funds.

According to the Circular, cash flow forecasting includes three types: Cash flow forecast in Vietnamese Dong; Cash flow forecast in foreign currency converted to US dollars; and Cash flow forecast in both Vietnamese Dong and foreign currency converted to Vietnamese Dong. The cash flow forecast period can be prepared quarterly, yearly, or depending on the situation, it can be daily, weekly, or monthly.

The Circular also guides the State Treasury to place term deposits of temporarily idle state funds in commercial banks with high safety levels under term deposit contracts. The maximum deposit term is no more than 03 months from the date the State Treasury completes the money transfer procedure for the transaction.

Additionally, the Circular specifies that the State Treasury will determine the timing and quantity of treasury bill issuance to cover temporary state fund shortages. The maximum issuance term is no more than 03 months. Furthermore, to address the shortage, the State Treasury may prematurely withdraw state funds being placed in term deposits.

Moreover, the Circular provides guidance on risk management for state fund management activities according to Decree 24/2016/ND-CP, ensuring that the actual state fund is not less than the minimum state fund balance denomination in the quarter.

Circular 314/2016/TT-BTC is effective from January 15, 2017.

Source: Finance Magazine

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