How is the National Monetary Policy Implementation Fund Accounted?

Illustrative image (source: internet)

According to Article 4 Circular 36/2019/TT-NHNN, the State Bank of Vietnam (Department of Finance - Accounting) shall set up the National Monetary Policy Fund as prescribed in Decision 07/2013/QD-TTg dated January 24, 2013, by the Prime Minister of the Government of Vietnam on the financial policy of the State Bank of Vietnam.

In the event that the balance of the National Monetary Policy Fund is insufficient to meet usage demands, the State Bank of Vietnam shall coordinate with the Ministry of Finance to propose and submit a solution to the Prime Minister of the Government of Vietnam to address the shortfall.

The unused balance of the National Monetary Policy Fund during the year shall be carried over and used in subsequent years. The National Monetary Policy Fund shall be accounted for and centrally managed at the Department of Finance - Accounting.

Additionally, Circular 36 stipulates that the management and use of the National Monetary Policy Fund must be strict, safe, transparent, and for the right purposes. The use of the National Monetary Policy Fund aims to support the achievement of national monetary policy objectives, ensure the safety of banking operations, and the system of credit institutions.

Furthermore, the source of repayment of the National Monetary Policy Fund's loans is the debt recovery and compensation from credit institutions. In the event that the repayment source is insufficient to repay the National Monetary Policy Fund, the State Bank of Vietnam shall handle it according to the financial policies of the State Bank.

See the full text of the regulations in Circular 36/2019/TT-NHNN, which takes effect from February 20, 2020.

Thu Ba

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