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Republic of Moldova State Treasury Cash Management

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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  1. Republic of Moldova State Treasury CashManagement

  2. Summary Legislative and Regulatory norms; Treasury Single Account (TSA); The toolsand the processes of management of the liquidity; Issues and difficulties.

  3. Why this topic is so important for Republic ofMoldova? Because of CASH SHORTAGESwe face.

  4. 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).

  5. Treasury Single Account (TSA) TSA creation – correspondent accountin AIPS 5

  6. Treasury Single Account (TSA) NPB balance structure in TSA 6

  7. Treasury Single Account (TSA) Analytical structure of the TSA

  8. 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.

  9. 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.

  10. The process ofcash management The needs; Forecasts (annual, monthly, daily).

  11. Cash needs – first stage Approval of expenditures; Monthly distribution of expenditures; Creation of payment documents; Submission of payment documents to treasuries;

  12. 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 .

  13. 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

  14. 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

  15. 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.

  16. Thank you Apostol Nataliae-mail:natalia.apostol@mf.gov.md tel/fax:0-22-26-2576;

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