New Limits on the Use of Temporarily Idle State Budget Funds to Deposit at Commercial Banks

03:18, 10/07/2024

This is a noteworthy provision mentioned in Circular 64/2019/TT-BTC amending and supplementing several articles of Circular 314/2016/TT-BTC guiding a number of articles in Decree 24/2016/ND-CP on policies for state treasury management.

The limit on the use of temporarily idle state treasury funds (STFs) to deposit at commercial banks with fixed terms and repurchase Government of Vietnam bonds has been amended and supplemented in Circular 64/2019/TT-BTC as follows:

han muc su dung NQNN tam thoi nhan roi de gui co ky han tai NHTM, thong tu 64/2019/TT-BTC

Illustrative image (source: internet)

- The limit on the use of temporarily idle STFs for depositing at commercial banks with fixed terms and repurchasing Government of Vietnam bonds on a quarterly basis shall not exceed the temporarily idle STF capacity for the quarter, in which:

- The maximum limit for using temporarily idle STFs for fixed-term deposits at commercial banks on a quarterly basis is 50% of the estimated STF balance for the quarter;- The maximum limit for using temporarily idle STFs to repurchase Government of Vietnam bonds on a quarterly basis is 10% of the estimated STF balance for the quarter;

- The estimated STF balance for the quarter is determined by the average of the estimated STF balances at the end of each month within the quarter.

Circular 64/2019/TT-BTC also stipulates that in the event the central budget requires an advance that exceeds the remaining temporarily idle STF balance at the time of the demand, the State Treasury shall retrieve funds from the fixed-term deposits before the maturity to meet the central budget’s STF advance requirements.

See more relevant regulations at Circular 64/2019/TT-BTC, effective from November 1, 2019.

Thu Ba

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