1. Albania, Croatia, Moldova, Russian Federation, Tajikistan, Turkey
Group 1
TSA coverage. Cash buffer
Albania, Croatia, Moldova, Russian Federation, Tajikistan, Turkey
Ankara, March 17, 2016

2. Problems faced by countries in extending the TSA coverage
“Efficiency-Autonomy dilemma”
Different actors with different autonomy legal framework and institutional structures
IT technology and legislation to design the system
Many institutions involved in the design and execution process
More complex forecasting needs
Special accounts for investment projects and donor funds. Might be a condition of donors
3 countries COTS, 3 countries develop in-house applications.

3. Practical solutions to those problems
Defining the autonomy properly
Idle balances in various accounts simply mean borrowing your own money
Convincing policy makers by quantifying the potential benefits of an extended TSA
Incremental extension by buying in autonomous institutions
Innovative payment systems and services
Establishing appropriate accounting systems and using chart of accounts to segragate and control
Active cash management requires a specialized and high level skill set

4. Challenges in targeting the cash balance and creating a cash buffer.
Lack of efficient interaction between stakeholders involved in the process
Lack of infrastructure for cash planning
No sufficient resources for cash buffer
Lack of appropriate risk management framework (Credit market and operational risks)
Forecasting what should happen instead of what will happen

5. Strategies to overcome the challenges
Closer working with debt managers
Better interaction with stakeholders (eg central bank)
Establishing a strong risk management infrastructure
Cash management should be based on realistic budget
Publishing cash buffer or not?