Republic of moldova state treasury cash management
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Republic of Moldova State Treasury Cash Management. Summary. Legislative and Regulatory norms ; Treasury Single Account (TSA); The tools and the processes of management of the liquidity ; Issues and difficulties. Why this t opic is so important for R epublic of M oldova ?.

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Republic of Moldova State Treasury Cash Management

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Republic of Moldova State Treasury CashManagement


Summary

Legislative and Regulatory norms;

Treasury Single Account (TSA);

The toolsand the processes of management of the liquidity;

Issues and difficulties.


Why this topic is so important for Republic ofMoldova?

Because of CASH SHORTAGESwe face.


Legislative and Regulatory norms

Budgetary System and Budgetary Process Law (no. 847-XIII of May 24,1996);

Annual Budget Law;

Methodological norms regardingthe execution of theNational Public Budget (order of Ministerof Finances no. 109 of August 26, 2011);

Agreement concerning bank services provbided to the Ministry of Finances of Republic of Moldova by the National Bank (december 5, 2007);

Public finance and fiscal responsability Law (draft).


Treasury Single Account (TSA)

TSA creation – correspondent accountin AIPS

5


Treasury Single Account (TSA)

NPB balance structure in TSA

6


Treasury Single Account (TSA)

Analytical structure of the TSA


The tools of cash management

Priorities for financing;

Receiving/Granting loans from/to budgets, managed in TSA, to cover the temporary cash gap;

To increase liquidities are attracted to the service thru Treasury and other entities;

Placements in deposit of the free temporary balance.


Priorities for financing

  • I –state debt servicing;

  • II – payments for wages, scholarships, pensions, allowances, compensations, allocations and social aids;

  • III –payments for Road Fund, National Environment Fund, Local Environment Funds and National Fund for Regional Development.


The process ofcash management

The needs;

Forecasts (annual, monthly, daily).


Cash needs – first stage

Approval of expenditures;

Monthly distribution of expenditures;

Creation of payment documents;

Submission of payment documents to treasuries;


Cash needs – second stage

Receiving of payment documents;

Developed of cash needs documents grouped by economical classification;

To submit the cash needs documents to the finance divisions;

Financing the expenditures according to the cash needs documents .


Cash management Forecasts

Forecasts:

Annual (State Budget)

Monthly, dividedin weeks (SB,NPB)

Daily (because of cash shortages)

Structure:

Revenues

Expenditure

Deficit/excess

Sourcesof deficit financing


The principles of cash management forecast

Revenues administrators-information about income expectation

Budget Limits

Statistics

Revenues and expenditure forecast

Government Debt

Bank statements

Cash Flow Forecast


Issues and difficulties

Cash shortages;

Government debts are managed outside the Treasury;

Foreign-financedprojects, public institutionsand agenciesare managed outside the Treasury;

The Law does not allow to get credits from financial instituitions;

The LB, SSSB, HIF accounts are in the TSA, but we can use the sources only through the borrow contracts;

The lack of trainings;

Qualified staff.


Thank you

Apostol Nataliae-mail:[email protected]

tel/fax:0-22-26-2576;


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