Guidelines on the Process and Procedures for Borrowing from State Treasury Funds of the Central Budget

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To proceed with borrowing state treasury funds, it is mandatory to comply with the provisions in Circular 23/2020/TT-BTC which guides the procedure for borrowing state treasury funds by the central budget as follows:

- When there arises a need to borrow state treasury funds, the State Budget Department shall issue a written request for borrowing state treasury funds to the State Treasury; in which, clearly stating the borrowing amount, purpose of the loan, loan term, and repayment period of the state treasury loan.

- Based on the written request from the State Budget Department and the temporarily idle state treasury funds, the State Treasury reports to the Minister of Finance for approval of the central budget borrowing state treasury funds, including the borrowing amount, purpose of the loan, loan term, and repayment period of the state treasury loan.

- Based on the approval document from the Minister of Finance, the State Treasury and the State Budget Department shall sign a State Treasury Loan Agreement (according to Form 01 issued attached to this Circular).

- Based on the State Treasury Loan Agreement, the State Budget Department prepares 02 copies of the State Treasury Loan Withdrawal Certificate (according to Form 04 issued attached to this Circular) to be sent to the State Treasury for implementation.

Regarding the loan term of state treasury funds for the central budget, it is determined by the Ministry of Finance, and shall not exceed 12 months from the effective date of the State Treasury Loan Agreement, and the withdrawal period for state treasury loans is no later than December 31 of the year when the state treasury loan arises. After this period, the state treasury loan expires and is canceled.

Note: State treasury loans of the central budget that were approved before the effective date of this Circular shall be implemented according to the signed Loan Agreements; in case of extension requests after the effective date of this Circular, the provisions of Articles 15 and 16 of this Circular shall apply.

For more details, refer to Circular 23/2020/TT-BTC effective from June 01, 2020.

Le Hai

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