State Treasury Structure of the Treasury Single Account MINISTRY OF FINANCE OF THE REPUBLIC OF MOLDOVA State Treasury Structure of the Treasury Single Account and Liquidity Management Tools Chisinau, October 2017
Government institutions Territorial (local) Treasury offices (38) Treasury system before TSA establishment (1993-2007) 1993-2007 1. Government budget (revenues) Government budget (expenditures) Budgets of administrative territorial units Government Social Insurance Budget Compulsory Health Insurance Funds National Bank Commercial banks (CB) AIPS CB NBM 1997- 2007 Before 1997 Government institutions Commercial banks Economic agents Territorial (local) Treasury offices (38) CB Central Treasury (client)
Prerequisites and a regulatory framework for TSA establishment Memorandums on economic and financial policy concluded with the IMF. Resolution of the Moldova Government on Socioeconomic Development of the Republic of Moldova and Implementation of an Action Plan to Carry Out the Government Program for 2005-2009, Modernization of the Country for Prosperity of the People, in the first half 2007. Action Plan for Transferring Government Budget, Government Social Insurance Budget, and Compulsory Health Insurance Funds to the TSA, signed by the Ministry of Finance, National Bank, National Social Insurance Fund, and the National Health Insurance Company.
Government institutions Local Treasury offices (38) Establishment and development of TSA National Bank (TSA) The State Treasury is a direct participant of the Automated Interbank Payments System (AIPS) since April 1, 2007 Phase II: January 1, 2008 Government budget Budgets of administrative territorial units Government Social Insurance budget Compulsory Health Insurance funds Phase I: March 1, 2007 Government budget (revenues) Government Social Insurance budget (revenues) Compulsory Health Insurance funds (revenues) Phase III: 2015 Servicing of externally financed projects Self-regulatory government organizations Phase IV: 2016 Consolidation of earmarked monies and special funds with the basic component Opening of separate accounts for provisionally credited funds of government organizations AIPS CB NBM MoF Government institutions Local Treasury offices (38) Economic agents Compulsory Health Insurance Funds (revenues + expenditures) Government Social Insurance Budget
TSA Structure TSA AIPS correspondent account (NPB) 266 accounts Local budgets 107 Basic component 37 Externally financed projects 33 Provisionally credited funds 37 General government budget 77 Basic component 1 36 3 Provisionally credited funds Government Social Insurance Budget/Compulsory Health Insurance Funds 42 Technical accounts Self-regulatory government organizations 38 Foreign currency account (NPB) 2 accounts – euro 4 accounts – US$ 144 accounts for externally financed projects
TSA coverage TSA Government budget Government Social Insurance budget Local budgets Technical accounts Compulsory Health Insurance Funds Self-regulatory government organizations
TSA coverage Shares of average daily balances in the TSA in 2016
Government budget account Administration of accounts in the TSA State Treasury Government budget revenues GSIB/CHIF revenue accounts 2 Technical accounts 3 Government budget account 1 GSIB/CHIF revenues Local budget revenues Local Treasury office 1 National Social Insurance Fund National Health Insurance Company GSIB/CHIF accounts 40 Self-regulatory government organizations (SRO) 38 accounts Government budget (GB) 76 accounts Local budgets (LB) 107 accounts SRO revenues GSIB/CHIF expenditures GB expenditures LB expenditures SRO expenditures
Administration of accounts in the TSA 1 LB account (basic component) 1 account for self-regulatory organizations Current accounts 1 LB account (provisionally credited funds) 1 GB account (basic component) Local Treasury office 1 GB account (provisionally credited funds) 1 GB account (externally financed projects) Government-financed institutions - 1149 Institutions financed from 1-level LBs – 3804 Economic agents Self-regulatory government organizations - 1641 Institutions financed from 2-level LBs - 11898 Government budget Local budgets
Movement of funds in the TSA State Treasury Local treasury office Economic agents Local budget revenues Bank account of local budgets Bank account of government budget Transfers of shared revenues (on a daily basis) Current accounts of 1st-level LBs Shared revenues of local budgets of the 1st and 2nd level Government budget account receipts Current accounts of 2nd-level LBs Financing of general government expenditures (as per financing needs and in view of available liquidity, in line with budgetary allocations) Current accounts of government-financed institutions Bank account of government budget (expenditures only) General government revenues Processing of bank statements Public debt servicing External payments Bank fees
Fiscal transfers between the government budget and local budgets State Treasury Local Treasury office Summary payment document for general-purpose transfers Summary payment document for special-purpose transfers (earmarked funds) Bank account of government budget Current accounts of 1st-level LBs Bank account of local budgets Current accounts of 2nd-level LBs Balance of earmarked funds
Borrowings from self-regulatory government organizations State Treasury Local Treasury office Borrowing of funds from bank account (balances in current accounts remain unchanged) Bank account of government budget Account for elf-regulatory government organizations Current account of a self-regulatory government organization Refund of borrowings
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