Circular No. 103/2025/TT-BTC guiding the business of using idle state funds temporarily and handling state funds temporarily in deficit

CIRCULAR

GUIDELINES FOR THE OPERATIONS OF USING TEMPORARILY IDLE STATE FUNDS AND HANDLING TEMPORARILY SHORTFALL STATE FUNDS

Decree No. 24/2016/ND-CP dated April 5, 2016, issued by the Government on the regime for managing state funds, amended and supplemented by Decree No. 14/2025/ND-CP;

Decree No. Decree No. 29/2025/NĐ-CP dated February 24, 2025 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance amended and supplemented by Decree No. 166/2025/NĐ-CP;

At the proposal of the Director of the State Treasury;

The Minister of Finance issues this Circular to guide the operations of using temporarily idle state funds and handling temporarily shortfall state funds.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the operations of using temporarily idle state funds and handling temporarily shortfall state funds as stipulated in Articles 7 and 8 of Decree No. 24/2016/ND-CP dated April 5, 2016, issued by the Government on the regime for managing state funds (amended and supplemented by Clause 4 and Clause 5 of Article 1 of Decree No. 14/2025/ND-CP).

Article 2. Applicability

1. State Treasury, Department of State Budget.

2. Hanoi Stock Exchange.

3. Provincial People's Committees and Departments of Finance under Provincial People's Committees.

4. Commercial banks involved in the operations of using temporarily idle state funds and handling temporarily shortfall state funds.

Chapter II
SPECIFIC PROVISIONS

Article 3. Using Temporarily Idle State Funds

1. Using temporarily idle state funds for central budget advances and loans

The use of temporarily idle state funds for central budget advances and loans shall be carried out through contracts signed between the State Treasury and the Department of State Budget.

2. Using temporarily idle state funds for provincial budget advances and loans

a) When there is a need for advances or loans from state funds, the People's Committee of the province sends a request for advance or loan from the Ministry of Finance (State Treasury) (in accordance with Form I and Form II attached hereto), accompanied by the Resolution of the People's Council of the province approving the request for advance from state funds (in case of requesting an advance from state funds) or the budget estimate for borrowing approved by the National Assembly or the People's Council of the province for the year when the borrowing from state funds occurs (in case of requesting a loan from state funds).

b) In cases where the Ministry of Finance agrees to allow the provincial budget to make advances or borrow from state funds, based on the document from the Ministry of Finance, the Department of Finance prepares two copies of the Withdrawal Certificate for Advance or Loan from State Funds (in accordance with Form III attached hereto) and sends them to the State Treasury area to withdraw funds for advances or loans from state funds.

In cases where the Ministry of Finance does not agree to allow the provincial budget to make advances or borrow from state funds, the Ministry of Finance will send a reply to the People's Committee of the province (specifying the reasons).

c) Based on the repayment period for advances or loans from state funds, the Department of Finance arranges sources and completes procedures to repay advances or loans from state funds fully and on time. In cases where the advances or loans from state funds of the provincial budget are not repaid fully and on time, within ten working days from the due date, the State Treasury area will deduct the remaining balance of the provincial budget fund to recover overdue advances or loans from state funds; at the same time, it will notify the Department of Finance and report to the People's Committee of the province about the deduction of the remaining balance of the provincial budget fund.

3. Using temporarily idle state funds to buy and resell government bonds

a) Trading partners for buying and reselling government bonds include commercial banks that are members of debt instrument trading transactions as prescribed in Circular No. 30/2019/TT-BTC dated May 28, 2019, issued by the Minister of Finance guiding registration, custody, listing, trading, and settlement of government debt instruments, government-guaranteed bonds issued by policy banks, and local government bonds, published on the website of the Vietnam Stock Exchange (excluding commercial banks that have been compulsorily transferred or are currently under special supervision).

b) The risk protection ratio in the transaction of buying and reselling government bonds is determined according to the level prescribed in Clause 3 of Article 20 of Circular No. 111/2018/TT-BTC dated November 15, 2018, issued by the Minister of Finance guiding the issuance and settlement of government debt instruments in the domestic market.

c) The transaction of buying and reselling government bonds is conducted on the principle of competitive interest rates, specifically:

The interest rate for buying and reselling government bonds applied to each commercial bank is the bid rate of that commercial bank, selected in descending order to ensure the cumulative volume of buying and reselling up to the lowest selected interest rate does not exceed the volume announced by the State Treasury.

The volume of buying and reselling government bonds for each commercial bank is the bid volume of that commercial bank. If the cumulative bid volume up to the lowest selected interest rate exceeds the volume announced by the State Treasury, after subtracting the bid volumes at higher interest rates, the remainder is allocated to the commercial banks bidding at the lowest selected interest rate in proportion to their bid volumes and rounded down to the nearest billion VND; any residual amount after rounding is allocated to the first commercial bank bidding at the lowest selected interest rate; if the allocation of the residual amount exceeds the remaining bid volume of this commercial bank, then the excess is allocated sequentially to the next commercial bank.

d) The transaction of buying and reselling government bonds is conducted on the debt instrument trading system of the Hanoi Stock Exchange (the resale component of government bonds from state funds) ensuring detailed requirements as set forth in Appendix IV attached hereto. The State Treasury is responsible for publicly disclosing the list of trading partners, schedules, and results of the transaction of buying and reselling government bonds; deciding and notifying the trading partners about the term and volume of government bonds for each transaction round.

d) In addition to the contents prescribed in points a, b, c, and d of this Clause, transactions for the resale of government bonds shall be carried out in accordance with Circular No. 30/2019/TT-BTC.

4. Using temporarily idle state treasury funds to deposit with commercial banks on a fixed-term basis.

a) The State Treasury shall be responsible for publicly announcing the schedule, time, method of conducting transactions, requirements for bids to receive fixed-term deposits; deciding and notifying commercial banks about the term and amount of deposits corresponding to each transaction round.

b) Depositing state treasury funds with commercial banks on a fixed-term basis shall be conducted based on the principle of competitive interest rates, specifically:

The interest rate applied to each commercial bank is the bid interest rate of that commercial bank, selected in descending order, ensuring that the cumulative amount deposited up to the lowest selected interest rate does not exceed the amount announced for deposit by the State Treasury.

The amount deposited with each commercial bank corresponds to the amount bid to receive deposits from that commercial bank. If the cumulative amount bid to receive deposits up to the lowest selected interest rate exceeds the amount announced for deposit by the State Treasury, after deducting the amounts bid at higher interest rates, the remaining portion of the amount announced for deposit by the State Treasury will be allocated to the first commercial bank submitting a bid at the lowest selected interest rate; if the allocation exceeds the amount bid to receive deposits from this commercial bank, the excess will be allocated sequentially to subsequent commercial banks that submitted bids to receive deposits at the next highest interest rate.

Article 4. Handling temporarily insufficient state treasury funds.

1. Handling temporarily insufficient state treasury funds denominated in Vietnamese dong.

Based on the approved quarterly state treasury management plan by the Ministry of Finance, the State Treasury decides the timing and volume of issuing treasury bills, the quantity of early redemption of state treasury funds currently deposited with commercial banks on a fixed-term basis to offset temporarily insufficient state treasury funds denominated in Vietnamese dong, ensuring timely and adequate fulfillment of budgetary expenditure needs and transaction units at the State Treasury.

2. Handling temporarily insufficient state treasury funds denominated in foreign currency.

a) Based on the approved quarterly state treasury management plan by the Ministry of Finance, the State Treasury decides the timing, volume, and type of foreign currency to purchase from commercial banks to meet the expenditure needs of state treasury funds denominated in foreign currency as stipulated in Clause 1, Article 8 of Decree No. 24/2016/NĐ-CP (amended and supplemented by Clause 5, Article 1 of Decree No. 14/2025/NĐ-CP) and Circular No. 02/2021/TT-NHNN dated March 31, 2021 issued by the Governor of the State Bank of Vietnam guiding foreign exchange transactions on the foreign exchange market of credit institutions permitted to operate foreign exchange.

b) The State Treasury purchases foreign currency from commercial banks permitted to engage in foreign exchange trading and supply foreign exchange services (excluding commercial banks that have been compulsorily transferred or are under special supervision) based on the principle of competitive exchange rates, specifically:

The exchange rate applied to each commercial bank is the quoted selling exchange rate of that commercial bank, selected in ascending order, consistent with the regulations of the State Bank of Vietnam regarding the spot exchange rate between Vietnamese dong and the foreign currencies intended to be purchased (if applicable), and the cumulative amount of foreign currency purchased up to the highest selected exchange rate does not exceed the amount of foreign currency announced for purchase by the State Treasury.

The amount of foreign currency purchased from each commercial bank corresponds to the amount of foreign currency quoted for sale by that commercial bank. If the cumulative amount quoted for sale up to the highest selected exchange rate exceeds the amount of foreign currency announced for purchase by the State Treasury, after deducting the amounts determined to be purchased at lower exchange rates, the remaining amount of foreign currency announced for purchase by the State Treasury will be allocated to commercial banks with the same highest selected exchange rate in proportion to the amount of foreign currency quoted for sale by that commercial bank; any decimal fraction (if any) will be rounded down to one unit of currency.

c) In the case where it is necessary to purchase foreign currency immediately to meet urgent requirements as requested by transaction units, the State Treasury purchases foreign currency from one of the commercial banks where the State Treasury has opened an account for foreign currency clearing, and based on the principle of competitive exchange rates.

Chapter III
IMPLEMENTATION

Article 5. Responsibilities of agencies, organizations, and units

1. The State Treasury shall be responsible for organizing and implementing this Circular; guiding and inspecting the implementation of this Circular at units under the State Treasury; promptly reporting to the Ministry of Finance any difficulties arising during the implementation process for consideration and resolution within its authority.

2. The State Budget Department shall be responsible for coordinating with the State Treasury in the temporary use of idle state funds for advance payments and loans to the central budget.

3. The Hanoi Stock Exchange shall be responsible for organizing the trading system for debt instruments as stipulated in Clause 3, Article 3 of this Circular and coordinating with the State Treasury to publish information on schedules and results of repurchasing government bonds.

4. Provincial People's Committees and provincial Departments of Finance under the Provincial People's Committees shall be responsible for the authenticity of information in the application dossier for advance payment and loan of state funds from the provincial budget and for fully and accurately implementing the contents committed to in the application letter for advance payment and loan of state funds.

5. Commercial banks shall be responsible for timely and full settlement of their payment obligations arising with the State Treasury.

Article 6. Effectiveness

1. This Circular takes effect from December 15, 2025.

2. This Circular replaces Circular No. 314/2016/TT-BTC dated November 28, 2016, issued by the Minister of Finance, guiding certain provisions of Government Decree No. 24/2016/NĐ-CP dated April 5, 2016, on the management regime of state funds (amended and supplemented by Circular No. 64/2019/TT-BTC); Circular No. 23/2020/TT-BTC dated April 13, 2020, issued by the Minister of Finance, on advance payment and loan of state funds from the state budget (amended and supplemented by Circular No. 97/2021/TT-BTC); Circular No. 107/2020/TT-BTC dated December 21, 2020, issued by the Minister of Finance, on transactions of repurchasing government bonds with a term from idle state funds temporarily held by the State Treasury (amended and supplemented by Circular No. 12/2023/TT-BTC).

3. In cases where the legal normative documents cited for application in this Circular are amended, supplemented, or replaced, they shall be implemented according to the provisions of the amended, supplemented, or replacing documents./.

 

ANNEX I

APPLICATION FOR TEMPORARY LOAN OF STATE FUNDS FROM THE PROVINCIAL BUDGET
(Attached to Circular No. 103/2025/TT-BTC dated October 29, 2025, issued by the Minister of Finance)

 

To: Ministry of Finance

Based on Resolution No…dated…of the Provincial People's Council regarding the temporary loan of state funds (SF), the People's Committee of Province/City….. requests the Ministry of Finance to consider and approve the provincial budget to temporarily borrow SF, specifically as follows:

1. Amount requested for temporary loan of SF:…billion VND.

2. Duration of temporary loan of SF:…months¹.

3. Implementation of the budget expenditure plan of the provincial/city budget up to the date of requesting the temporary loan of SF:

- The amount of budget expenditure approved by the Provincial People's Council:…billion VND.

- The amount of budget expenditure actually implemented:…billion VND.

- The remaining budget expenditure:…billion VND.

4. The People's Committee of Province/City….. commits to repay the temporary loan of SF fully and on time and allows the State Treasury region….. to proactively deduct the provincial/city budget surplus to recover overdue repayment of the temporary loan of SF (if any)./.

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¹ Ensuring repayment of the temporary loan of state funds no later than December 31 of the year in which the temporary loan of state funds was incurred.

 

ANNEX II

APPLICATION FOR LOAN OF STATE FUNDS FROM THE PROVINCIAL BUDGET
(Attached to Circular No. 103/2025/TT-BTC dated October 29, 2025, issued by the Minister of Finance)

To: Ministry of Finance

Based on Resolution No….. of the Provincial People's Council regarding the local budget estimate for year….., the People's Committee of Province/City….. requests the Ministry of Finance to consider and approve the provincial budget to borrow state funds (SF), specifically as follows:

1. Amount requested for borrowing SF:….. billion VND.

2. Duration of borrowing:….. months².

3. Outstanding debt balance generated in the year at the time of requesting the loan of SF:…billion VND

4. The People's Committee of Province/City….. commits to comply fully with the legal regulations on local government debt under the State Budget Law, Public Debt Management Law; guiding decrees for the State Budget Law, Public Debt Management Law and Resolution No …of the National Assembly on piloting special mechanisms and policies for development for Province/City….. (if applicable); and commits to repay the borrowed SF fully and on time and allows the State Treasury region ….. to deduct the provincial/city budget surplus to recover overdue repayment of the borrowed SF./.

__________________________

² Ensuring repayment of the borrowed state funds no later than December 31 of the year in which the borrowed state funds were incurred.

 

ANNEX III

NOTICE OF WITHDRAWAL OF TEMPORARY LOAN AND LOAN OF STATE FUNDS FROM THE PROVINCIAL BUDGET
(Attached to Circular No. 103/2025/TT-BTC dated October 29, 2025, issued by the Minister of Finance)

 

NOTICE OF WITHDRAWAL [TEMPORARY LOAN/LOAN]³ STATE FUNDS

To: State Treasury …..

Based on Circular No ... dated …/…/… of the Ministry of Finance approving the provincial/city budget to [temporarily borrow/borrow] state funds;

The Department of Finance …requests the State Treasury region….. to implement the [temporary loan/borrowing] of state funds for the provincial/city budget:

- Amount in figures: …

- Amount in words: …

 

 

__________________________

³ In case of advance payment withdrawal, it should be recorded as "advance payment", in case of loan withdrawal, it should be recorded as "loan".

 

ANNEX IV

REQUIREMENTS FOR THE TRANSACTION OF RESELLING GOVERNMENT BONDS ON THE DEBT INSTRUMENT TRADING SYSTEM
(Attached to Circular No. 103/2025/TT-BTC dated October 29, 2025, issued by the Minister of Finance)

1. The time frame for implementation on the debt instrument trading system of the Hanoi Stock Exchange on the day of reselling government bonds shall be as follows:

a) By no later than 9:15 AM, the State Treasury sends out the request for quotation (notification of transaction demand).

b) By no later than 10:30 AM, commercial banks send out confirmed bid orders (bids).

c) By no later than 10:45 AM, the State Treasury opens the bids.

d) By no later than 4:30 PM, the State Treasury selects the bids to execute the transactions and signs contracts with each selected commercial bank. After 4:30 PM, the results of reselling government bonds by selected commercial banks that have not completed contract signing will be canceled.

2. At each trading session, each commercial bank may submit a maximum of five (05) bids for one term, ensuring the total volume of bids does not exceed the total volume of requested quotations from the State Treasury. Each bid includes the bid interest rate (to two decimal places); the codes of government bonds used as collateral and the bid volume (transaction volume) corresponding to each code (based on face value).

3. The quoted price for determining the transaction execution price is the nominal interest-free price (clean price) published on the day of reselling government bonds on the Hanoi Stock Exchange's electronic information website.

4. Government bonds as collateral remain unchanged throughout the trading process; in case there is accrued nominal interest on government bonds during the trading period, the repayment of interest to commercial banks will be carried out outside the debt instrument trading system of the Hanoi Stock Exchange.

5. The payment deadline shall not be adjusted, except in cases stipulated in point a, Clause 4, Article 32 of Circular No. 30/2019/TT-BTC.