Regulation on the Extension of State Treasury Loans Effective from June 01, 2020

Illustrative image (Source: Internet)

According to Circular 23/2020/TT-BTC in case the central budget faces difficulties and has not arranged sources to repay the state treasury loan, the state treasury loan may be considered for an extension with a maximum extension period not exceeding 12 months from the due repayment date stipulated in the State Treasury Loan Agreement.

Regarding the procedures for extending the state treasury loan, the following provisions apply:

- No later than 20 working days before the due repayment date of the state treasury loan, the Department of State Budget shall submit a written request for extension of the state treasury loan to the State Treasury.- Based on the document from the Department of State Budget and the availability of temporarily idle state treasury funds, the State Treasury shall report to the Minister of Finance for approval of the extension of the state treasury loan for the central budget.- Based on the approval document from the Minister of Finance, the State Treasury cooperates with the Department of State Budget to sign the Appendix of the State Treasury Loan Agreement (according to Form 02 issued with this Circular).

Note: The amount of state treasury loans for the central budget must fall within the annual state budget estimate for loans to offset budget deficits or loans to repay the central budget's principal debt decided by the National Assembly. The term of the state treasury loan for the central budget is decided by the Ministry of Finance, with a maximum duration not exceeding 12 months from the effective date of the State Treasury Loan Agreement.

See details at Circular 23/2020/TT-BTC effective from June 1, 2020.

Le Hai

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