1. Managing cash flows and balances at the Single Treasury Account
RUSSIAN TREASURY
Managing cash flows and balances at the Single Treasury Account
March 2016

2. RUSSIAN TREASURY
Section I
Single Treasury Account operations; planning and forecasting funds at the Single Treasury Account
3-9
Section II Managing liquidity at the Single Treasury Account in
the Russian Federation
10-16

3. STA BESP Key cash management elements Active and passive operations
Section I STA operations; planning and forecasting funds at STA
Key cash management elements
STA – aggregate accounts for federal budget funds;
Cash – concentration – system for provision and consolidation of funds;
BESP – Banking Electronic Speed Payment System, providing for cash concentration;
Liquidity planning and STA balances targeting – key element in STA cash flow management;
Active and passive operations – operations for unconditional performance of budget commitments and management of idle funds;
“Documentary” operations – mechanism for treasury support of contracts, allocation of subsidies, investments and contributions («treasury letters of credit»);
Limiting expenditures – setting limits for financing.
Cash - concentration
BESP
STA
Liquidity planning and STA balances targeting
Active and passive operations
“Documentary” operations
Limiting expenditures

4. 85 Federal Treasury Departments
Single Treasury Account Operations
TOFT 2
TOFT 84
TOFT 1
. . .
TOFT 85
85 Federal Treasury Departments
Single
Treasury
Account
Consolidation of regional account balances
(cash-concentration)
Daily support to regional accounts (t+1)
transfers
Sovereign Wealth
Funds

5. Procedures for planning and forecasting federal budget implementationFT
Exchange of state secret data is performed outside the information system
CCBF, CAF, CCAF
IOD of FT develops Federal budget implementation information and sends it to forecast development participants
Receipt of federal budget implementation information to develop forecast data
Upload of data of forecasting parties to COFT software for analysis
Development of forecast data and submission to the FT
Cash budget COFT development for federal budget implementation and submission to Russia’s Finance Ministry
Uniform Information System of Russian Finance Ministry
597 various forms:
182 forms for revenue;
210 forms for expense;
6 forms for FB deficit financing sources;
91 explanatory notes for revenue;
105 explanatory notes for expense;
3 explanatory notes for FB deficit financing sources;
Phase 1
Phase 2
Expense forecasting under PF of the RF FM
Phase 3
STA status information generated

6. Change dynamics for budget and off-budget fund balances for 2015 (RUR bn)
Total budget funds
Off-budget funds

7. …... Single Treasury Account
Single Treasury Account functions in new conditions
Sovereign Wealth
Funds
Single Treasury Account
Consolidation of balances (entries) without “physical” aggregation
Targeting balances, defining ∑ for placement/raising
transfers
…...
банковский счет
№30101 (DFT 1)
treasury account
счет
Bank account № 30101
(DFT 1)
банковский счет
№30101 (DFT 2)
treasury account
Bank account № 30101
(DFT 2)
банковский счет
30101 (DFT 85)
treasury account
Bank account № 30101
(DFT 85)
Correspondent account system
Treasury
account
Treasury
account
Treasury
account
Treasury
account
Treasury
account
Treasury
account
Cash budget planning and forecasting
Лицевой счет
Customer
account
Customer
account
Лицевой счет
Лицевой счет
Customer
account
Customer
account
Customer
account
Лицевой счет
Лицевой счет
Customer
account
Лицевой счет
Лицевой счет
Customer
account
Customer
account
Лицевой счет
Customer
account
Лицевой счет
Customer
account
Customer
account
Лицевой счет
Лицевой счет
Customer
account

8. Key activities to set up conditions for development of cash movement forecast for STA
Pilot regions
(2014)
7 regions
Rollout Phase 1
(QI 2015)
23 regions
Rollout Phase 2
(QII 2015)
30 regions
Rollout Phase З
(QIII 2015)
24 regions
Cascaded training of financial authorities and review of treasury technologies
Transfer of information by regional financial authorities to TOFT
Generation of Forecasts for cash movement across accounts
TOFT information transfer to COFT
Generation of pilot cash movement forecast for STA
Expansion of forecasting scope

9. STA operations Development of cash budget forecasts
Pre-requisites for efficient STA liquidity management
STA operations
-Placement of idle STA funds;
- Attracting funds to STA (potentially)
Development
of cash budget
forecasts
Continuous operation of the Single Treasury Account
High-quality forecasts (short-, medium-, long-term)
Extensive set of management tools

10. DEVELOPMENT PROSPECTS
Section II STA liquidity management in the Russian Federation Liquidity Management Tools for Federal Budget Single Account
Forward REPO
April
2015
Budget loans to municipalities
Currency swap
January
2015
Overnight REPO transactions
November
2014
FX deposits for 5 to 245 days
DEVELOPMENT PROSPECTS
Budget loans
up to 50 days
February 2014
Budget loans to Russian regions
April
2008
Russian rouble deposits for 5 to 245 days
Short-term loans

11. Aggregate statistics for STA idle funds managementin
Total funds placed - RUR ,16bn.
Total revenues – RUR 236,87bn
Total revenues - RUR 75,11bn
2015 revenue plan (deposits, repo, loans)
Above plan performance

12. Placement of funds to bank deposits
Revenue
RUR ,6 bn
RUR 68,5 bn
Contracts
Credit Institutions
Federal Treasury
Limits
Selection parameters
Bids
Selection results
Exchange

13. REPO buy(sell) operations for securities
Placement
Revenue
RUR15517,5 bn
RUR6,5 bn
Trading Mechanism
(Exchange, OTC)
Federal Treasury
Credit institutions
transactions
transactions
Reporting
Short deal algorithm
Credit institutions
Russian Treasury
Russian FM
CBR
Security sell bids
Bid book
Hurdle rate
Buy bid
Deal execution

14. Budget loans to RF regions and municipalities in 2015
Lending conditions
The right to raise loans is provided by budget law (resolution) of a constituent region of the RF (municipality)
The limit is 1/12 of budget revenue , established by budget law (resolution) of a constituent region of the RF (municipality) for current financial year
The interest rate is established by the federal budget law (at 0,1% p.a.)
The maximum loan tenor is 30 days (loan payback deadline - November 25 of current year)
As of
Parameter
Amount
(RUR mn)
2015
Loans:
To RF regions
Municipalities ,1 ,6
47 168,5
Revenues:
From RF regions
69,9
66,2
3,7
Over 2015 funds were provided to:
58 RF regions;
80 municipalities

15. 2015 STA liquidity management results (RUR mn)
Liquidity Management Results for Federal Budget Single Account
2015 STA liquidity management results (RUR mn)
RUR bank deposit revenues
FX placement revenues
REPO revenues
Budget loan revenues 6 8 1 4 , 3 3 7 8 , 6 5 1 3 , 9 6 9 ,
Total, 2015
Cash balances:
deposits - RUR 1,2tn
Funds balances:
REPO- RUR 300,0bn 7 5 1 ,

16. Thank you for your attention!