1. TSA and Cash management function in Albania
Issues/questions
Anila Çili
Treasury Director

2. Objectives of the cash management
To ensure that the treasury has the liquidity to pay its obligation as the fall due
To ensure the availability of funds at the right time in the right place and at an acceptable cost
To reduce borrowing requirements and interest cost

3. Cash management framework
Two arche types: decentralized and centralized
Decentral: cash in advance, local bank relations
Central: request for payment to MoF, single treasury account, central bank relations
For discussion: How do they perform and what are pro’s and con’s?

4. Cash forecast/budget allocations
Centralized model
ministries
Min of Finance
Ministry of Foreign
Affairs
Ministry of Foreign
Affairs
Cash forecast/budget allocations
Ministry of Foreign
Affairs
Treasury Department
Line Ministries
request for payment
Treasury system
moneytransfer
information
payment orders
funds
Capitalmarket
Moneymarket
Central Bank

5. Decentralized model Ministry of Finance Ministry of Foreign Affairs
budget
Budget Department
Ministry of Foreign
Affairs
Line Ministries
cash in advance
Treasury
payment
orders
deposits
Money transfer
information
funds
Capital market
Com. Banks

6. Activities of treasury function
Debt management:
funding policy and risk management
front office: money and capital market deals
back office: accounting
Cash management:
providing an infrastructure for payments
cash regulation
cash forecasting
For discussion: Integration of Debt and Cash management functions?

7. Other Issues
The cash forecasting (monthly) is prepared from LM in spending unit level and send to Treasury. Important number of budget institutions or cash pools (more than 2000). How can be decreased this number and simplify the cash management process?
How can be managed the liquidities of central and local government under TSA under the new requirements of local borrowing law. Is necessary having special accounts for each local government institutions?