Treasury bills and treasury notes are sold through auction. The auctions are held using electronic trade system in the National Bank of Georgia. The auctions are held by multi-price method. Only commercial banks are allowed to participate in the auctions.

Not later than a week before starting each quarter the Ministry of Finance publishes emission calendar for forthcoming three months. The emission calendar includes information on dates of auctions, validity and volume of the state securities to be sold on the auction. Not later than 5 days before the auction the Ministry of Finance publishes a notification about holding the auction in media and on the website of the Ministry. Information about results of the auction is published on the day of the auction on the websites of the Ministry of Finance of Georgia, State Treasury and the National Bank of Georgia.

Money issuance operational financial plan is a short-term planning and includes one month forecast of factual revenue collection, funding sources and expected payables. Budgetary organizations bear expenses in the framework of the approved financial plan.

The loan from the State Budget is issued on the basis of a direction of the President of Georgia or the Government of Georgia, stipulating: a) purposefulness of the loan; b) source of the loan issuance; c) the loan issuer; d) the loan receiver; e) controller of purposeful use of the loan; f) amount of the loan; g) annual interest rate for use of the loan; h) terms (timeframe) of the loan use and loan repayment; i) means of the loan security (the direction may envisage other terms necessary for purposeful and efficient use of the loan).

The State Budget law beneficiary may be an enterprise or organization defined by the Tax Code of Georgia, or an entrepreneur entity or physical person of any legal form stipulated by the law of Georgia “On Entrepreneurship.”

To secure taken loan liability the loan beneficiary may present: a) bank guarantee; b) insurance certificate of an insurance company (policy); c) own or third person’s property for the creditor’s benefit to pawn or/and load with mortgage

Restructuring of the loan liability means freezing and/or delaying of overdue loan liability. Term of restructuring does not exceed 5 years (2 years - freezing, 3 years – delaying), except for a particular case (in the particular case term of restructuring is defined as not exceeding 15 years). Decision on restructuring of the overdue loan liability is made by the Government of Georgia through introduction of the Commission for investigation of restructuring reasonability of overdue tax and loan liabilities, created under the Ministry of Finance of Georgia.

Accounting balance and balance annex forms of the organizations on the budgetary financing are approved by the order №364 of the Minister of Finance of Georgia as of 16 April 2008 on approval of “Accounting Reporting Forms of Organizations on Budgetary Financing”. Same order defines timeframes for submission of quarterly and annual reports.

At the end of the reporting period to the net value account (5100) should be reimbursed revenue and expenditure accounts (except for the revenues and expenditure from economic activities), as well as funding and other economic flows accounts.

Sums of the purposeful grant in quarterly reporting accounts is reflected in balance annex forms – form №4-1 and form №3, whereas in the annual reporting accounts – in the form №2 and form №3, on the basis of introduction of relevant amendments to the State Budget.

Budgetary organization has to charge depreciation on fixed assets using straight-line method, in the framework of established norms, on the original (historical) value of assets and not on their residual balance value.

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Sums are cut down from the unified treasury account ¹200122900, by the National Execution Bureau by compulsion, on the basis of submitted to the National bank of Georgia order for collection, for benefit of physical and legal entities.

Basis for reflecting by the Treasury Service in the state budget execution report of the obligation, payment order and cash-based expenses on sums spent (spending of which is performed bypassing treasury accounts) in the framework of investment projects to be implemented through funding sources and grants received from abroad is information submitted by the organization in writing in established format on the projects implementation status and/or information submitted in writing by the Foreign Relations Department of the Ministry of Finance that is submitted to the State Treasury in 7 days period after completion of the reporting period.

Monetary resources at the disposal of the State Treasury are stored on the unified account of the State Treasury, as well as on other accounts of the State Treasury.

Without consent of the State Treasury it is inadmissible to open a bank account of the budgetary organization of the central authority of Georgia. The State Treasury is authorized to cancel the permit on opening of the bank account and to close the account. The budgetary organizations ensure that all incomings received by them are fully and immediately registered on the unified account of the State Treasury, except for the non-budgetary revenues of legal entities of public law.

In the framework of the submitted to the State Treasury daily operational financial plan of money issuance according to payment order registers electronic payment orders are developed and by means of the Real Time Gross Settlement System (RTGS) are sent to the National Bank of Georgia through which sums are transferred to commercial banks.

1) Sums transferred in previous years are returned to the treasury code 302003460 – “Unused in previous years and returned budgetary resources.” 2) Sums paid in current year are returned to the treasury code 302009921 “Return of costs bore form the budget;” upon return cash expenses and payment order is reduced by the appropriate sum.

Monetary grants/purposeful financing received by the ministries and institution will be transferred to the unified ¹200122900 account of the Treasury, treasury code – 302007000 “Revenue Received as Purposeful Grant”, whereas expenses bore by resources of grant/purposeful financing will be returned to the unified treasury account treasury code 302009941 “Return of Expenses Bore in the framework of Purposeful Grant.”

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Physical or legal person for benefit of whom the due is returned applies to the State Treasury by written request that should be accompanied by legally enforced court decision/sentence/order, writ of execution* and a copy of the receipt confirming payment of the sum.

The payer applies to the State Treasury by written request on the issue of addressing the sum to the incorrect treasury code symbols and for the transfer of the sum to the correct treasury code; the request should be accompanied by the written confirmation (signed by the authorized person and sealed) on erroneous entry of the sum of the relevant executive, court or legislative authority, also other state and local self-government body that had performed services for which other incomings were paid.

To the deposit treasury code of the spending entity are transferred deposits (temporarily allocated sums) allocated for budgetary organizations subordinated to the spending entity (e.g. tender payment, earnest money in case of auctions announced by budgetary organizations, etc.) that are later directed to the budget or returned to the payer.

Sums allocated as deposits on the unified treasury account are returned to the payer or directed to the budget by the budgetary organization on the deposit code of which the sum is allocated, on the basis of the payment order submitted to the Treasury.

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