JOINT CIRCULAR No. 44 TT/LB issued by the Ministry of Finance and the State Bank of Vietnam guiding additional matters regarding the adjustment and assurance of cash between the banking system and the Treasury.

JOINT CIRCULAR

The Ministry of Finance and the State Bank of Vietnam issued Circular No. 09 TT/LB dated February 27, 1990, temporarily regulating the opening of accounts, payment relations, and cash adjustment between the banking system and the state treasury. However, during implementation, difficulties and obstacles have arisen in organizing cash adjustment between the banking system and the state treasury due to several reasons, including some aspects of the cash adjustment mechanism within the banking system and between the bank and the state treasury that are not entirely reasonable and need to be supplemented and amended to suit the current situation, especially when the bank implements Decrees No. 37 LCT/HĐNN8 and No. 38 LCT/HĐNN8 dated May 24, 1990, of the State Council from October 1, 1990.

To create conditions for both sectors to fully perform their functions in increasing cash revenue for the state and meeting the cash needs of the national economy; the Ministry of Finance and the State Bank of Vietnam provide supplementary guidelines on certain points regarding the adjustment and assurance of cash between the banking system and the state treasury as follows:

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1/ Regarding the principle of cash adjustment and assurance for the state treasury, the bank is responsible according to the spirit of Decision No. 07/HĐBT dated January 4, 1990, of the Council of Ministers and Circular No. 09 TT/LB dated February 27, 1990, of the Ministry of Finance and the State Bank of Vietnam: The bank has the responsibility to ensure cash adjustment and supply to the State Treasury based on the balance of the State Treasury's deposit account at the bank and according to the agreed cash income and expenditure plan between the two parties.

2/ To ensure that the state treasury system can proactively manage cash for payments to transaction units, contributing to the joint collection of cash in the national economy, and reforming the planning mechanism, banking units and state treasury units should coordinate to implement the following measures effectively:

a) Strengthen the collection of government revenue (in cash and transfer) into the State Treasury promptly and timely according to the state's cash management and non-cash payment regulations.

b) State Treasury units need to strictly manage cash disbursements to transaction units, ensuring they are used for the intended purposes; priority should be given to solving wage, wage allowances, scholarships, living expenses, social welfare allowances, and special expenditures; other expenditures should be handled according to the state's cash management regulations; cooperate with the bank to organize inspections of cash usage by transaction units, particularly for military units such as Defense, Security, and CP84, where cash usage inspections will have specific regulations.

c) Depending on the specific organizational situation of the banking system in localities (with agreement between the Branch Bank and the State Treasury Branch) or in places without a Bank of Vietnam Representative Office, the State Treasury Branch may adjust cash among its branches; the State Treasury Branch receives cash from the bank (where the State Treasury Branch maintains an account) to supply cash to subordinate branches, adjusting excess cash from one branch to another lacking cash. In necessary cases, the National Treasury may adjust cash from surplus State Treasury Branches to those in deficit within the State Treasury system, and this adjustment must be coordinated with the Central Bank of Vietnam.

d) Annually and quarterly, State Treasury Branches establish plans for cash income and expenditure with the bank where the State Treasury Branch maintains an account, simultaneously sending the agreed plans to the National Treasury and the Central Bank of Vietnam (Economic Planning Department) as a basis for planning and organizing overall cash adjustment between the banking system and the State Treasury system.

When the Central Bank of Vietnam informs provincial, city, and special zone banking units of the cash issuance targets for the budget, it should also inform the National Treasury to coordinate implementation.

e) Banking and State Treasury units need to unify cash reserve limits; if reserves exceed the limit, the State Treasury deposits excess cash into the bank, and if there is a shortage, it withdraws cash from the bank for use according to the agreed cash deposit and withdrawal schedule between the two units; cash handover between the bank and the State Treasury is carried out according to the general provisions of the Governor of the Bank of Vietnam.

The Bank of Vietnam will handle the exchange of damaged currency from the State Treasury that does not meet circulation conditions according to the prescribed regulations.

3/ This Circular takes effect from October 1, 1990. The Ministry of Finance and the Central Bank of Vietnam guide units within the system and related units to implement the provisions of Circular No. 09 TT/LB dated February 27, 1990, and the additional provisions in this Circular./.

CHAIRMAN

OF THE BOARD