What is the cost of using state treasury funds in Vietnam?

Circular 23/2020/TT-BTC stipulates that the central budget when temporarily using or borrowing state treasury funds and the provincial budget when temporarily using state treasury funds have the responsibility to pay the cost of using state treasury funds to the State Treasury monthly at a rate of 0.10% per month (based on a 30-day month), no later than the 10th of the month following the month in which the payment is due. In particular, the cost of using state treasury funds for the month in which the temporary use or borrowing of state treasury funds is due for repayment is to be paid to the State Treasury at the same time as the repayment of the temporary use or borrowing of state treasury funds. The cost of using state treasury funds in Vietnam is calculated as follows:

In which:

The number of actual temporary use or borrowing days in the month (including weekends and holidays) is calculated from the date of fund withdrawal (for the initial cost calculation period) or the first day of the month (for subsequent cost calculation periods) to the end of the last day of the month for cost calculation or the day before the date of repayment of the temporary use or borrowing of state treasury funds (for the final cost calculation period).

Additionally, the overdue cost of using state treasury funds in Vietnam is guided in this Circular as follows:

In cases where the central budget's temporary use or borrowing of state treasury funds, or the provincial budget's temporary use of state treasury funds exceeds the repayment due date, the central and provincial budgets have the responsibility to pay the overdue cost of using state treasury funds at a rate of 150% of the cost of using state treasury funds specified in Clause 1 of this Article. The overdue cost of using state treasury funds is paid once to the State Treasury upon the recovery of the overdue temporary use or borrowing of state treasury funds and is calculated as follows:

In which:

The number of overdue temporary use or borrowing days (including weekends and holidays) is calculated from the repayment due date of the temporary use or borrowing of state treasury funds that are not repaid until the day before the actual repayment of the overdue temporary use or borrowing.

Note: In cases where the central budget's borrowing of state treasury funds in Vietnam is overdue but extended by the Ministry of Finance of Vietnam, it is not considered an overdue borrowing of state treasury funds and the cost of using state treasury funds specified in Clause 1 of this Article applies for the entire extension period.

For more details, refer to Circular 23/2020/TT-BTC which is effective from June 1, 2020.

Le Hai

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