1. Ministry of Finance of the Republic of Moldova 1 01-03 of June 2016

2. Ministry of Finance of the Republic of Moldova 2 Economic Agents State budget revenues Public Institutions Commercial Banks Economic Agents Budget allocation quarterly MoF - State Treasury (account in National Bank of Moldova) State Budget revenue collection and management by the State Treasury - without evidence on tax types. Public institutions accounts in Commercial Banks Before 1998

3. Ministry of Finance of the Republic of Moldova 3 Economic Agents State budget Public Institutions Commercial Banks Economic Agents Budget alocations quarterly MoF - State Treasury Development of the institutional framework and methodology thru which the state has created the opportunity to settle and apply the income and expenditure policy, organizing, both central and local cash execution of the National Public Budget. 38 Territorial Treasuries + Social Fund and Health Funds revenues Local budget revenues Closing the current accounts of public institutions in commercial banks opening 37 Territorial Treasuries with current accounts in commercial banks Treasury acount numbers for budget institutions for evidence of revenues and expenses After 1998

4. Ministry of Finance of the Republic of Moldova 4 CB NBM MoF - State Treasury State Treasury became participant of AIPS; In the ST was created the Settlement Center – division responsible for monitoring and ensuring the continuous connection with AIPS. Public Institutions Economic Agents Efficient use of the state resources by the public institutions according to funds destinations approved by budget law and strengthening the responsibility of authorizing officers in public finance management Territorial Treasuries Social Fund Health Funds Since 2007 MoF

5. Ministry of Finance of the Republic of Moldova 5 CBMFCB NBM Territorial Treasuries Client treasury system implementation. Implementation of the digital signature on payment orders. Monitoring the correct application of digital signature by responsible persons. Payment document Digital signature since 2015 Payment document Digital signature since 2008 Public Institutions Extrabugetary Institutions Payment document Digital signature since 2015 Since 2015 in TSA were included the resources of the self- managed institution so these are served through the treasury system. Payment document Digital signature since 2008 Social Fund Health Funds MoF

6. Ministry of Finance of the Republic of Moldova 6

7. Ministry of Finance of the Republic of Moldova 7 State Treasury State budget - 1 account Revenues of the Health Funds - 1 account Revenues of the Social Fund - 1 account Technical - 3 accounts Teritorial Treasuries (38) Local Budgets – 39 accounts 37 accounts – for SB execution TEPIM – 74 accounts Accounts for self-managed institutions - 38 accounts National Socials Insurance House National Health Insurance Company Expenditures of the Social Fund- 27 accounts Expenditures of the Health Funds - 7 accounts IP - 28 accounts National Bank of Moldova Nostro account State budget – 4 accounts (euro and dollars) IP (currency) - 120 accounts

8. Ministry of Finance of the Republic of Moldova 8 Cash Flow Division Forecast and cash management unit Authorizing office 1.State budget forecasting, including investment project forecast - Annual - Weekly - monthly - Daily 2. Forecast of the TSA balance; 3. Monitoring the cash flow thru the TSA; 1. Ensure and monitor the connection with AIPS, manage the incidents that can have impact on continuous connection; 2. Ensure law and legislation compliance applying the electronic signature on payment documents by the responsible persons from the MoF; record the authorized persons with the right of digital signature.

9. Ministry of Finance of the Republic of Moldova 9 Revenues and expenditure forecast Bank statements Government Debt Cash Flow Forecast (annual, monthly, weekly and daily)

10. Ministry of Finance of the Republic of Moldova 10 Balance at the end of the month About 700 MM lei (35 MM $) SF transfers – about 300 (15$) MM lei Wages – about 200 (10$) MM lei HF transfer – 50 (2.5$) MM lei Local budgets – about 150 (7.5$)MM lei

11. Ministry of Finance of the Republic of Moldova 11 Priorities for financing; Attraction of foreign loans, state securities issuance; Receiving/granting loans from/to budgets, managed in TSA, to cover the temporary cash gap; Borrowing funds from investment projects financed by donors and from self-management institutions; Loans from financial institutions; Placements in deposit of the free temporary balance.

12. Ministry of Finance of the Republic of Moldova 12 1.Resistance from central and local authorities to transfer of cash to TSA; 2.Imperfect legal basis; 3.Imperfect information systems; 4.Treasury requirement, record control (application of BC,CA); 5.Political and economic instability; 6.Instability of financial-banking sector; 7.Lack of qualified staff.

13. Ministry of Finance of the Republic of Moldova 13 improve the legal framework develop human capacity develop information system divide responsibilities between TT and authority/public institutions improve methodology Implementation of international standards

14. Ministry of Finance of the Republic of Moldova 14