Amended Date: 19 March 2025

Article 1

To enhance debt management, improve the efficiency of financial allocation, and increase debt service capacity, the Central Government Debt Service Fund (hereinafter, "the Fund") is established pursuant to Paragraph 1, Article 11 of the Public Debt Act, and these Regulations are adopted pursuant to Article 21 of the Budget Act.

Article 2

(Deleted)

Article 3

The Fund is a special fund as defined in Subparagraph 2, Paragraph 1, Article 4 of the Budget Act, for which a subordinate unit budget shall be prepared, and the Ministry of Finance (MOF) is its competent authority.

Article 4

    The sources of the Fund are as follows:

1. Funds allocated in the general budget and special budgets every year for repayment of debt.

2. Principal and interest set aside to recall bonds that have passed the statutory deadline for redemption.

3. Interest and operating income generated from the Fund.

4. Other relevant income.

For the repayment of debt mentioned in Subparagraph 1 of the preceding paragraph, at least five to six percent of the tax revenues of the current fiscal year shall be allocated.

Article 5

The Fund, on the precondition that there will be no increase in the outstanding debt, shall raise funds by the following means for the purposes of repayment of existing debt or conversion of existing debt to new debt:

1. Issuance of government bonds or borrowing from financial institutions.

2. Receiving funds on loan from the accounts of other special funds. 

The required interest and fees associated with the raising of funds under the preceding paragraph shall be allocated to the Fund from the general budget in accordance with budgetary procedures.

Article 6

The Fund shall be used for the following purposes:

1.To repay the principal of outstanding debt of the central government.

2.To repay the principal, interest, and fees associated with the raising of funds under the preceding article.

3.To cover administrative and general expenses.

4.To cover other relevant expenses.

Article 7

The Fund may be used to pay the interest on debt and related fees listed under the general budget and special budgets.

Article 8

The custody and utilization of the Fund shall emphasize profitability and security, and its deposit and safekeeping shall furthermore be handled in accordance with the Government Treasury Act and related laws and regulations. 

Article 9

The Fund may purchase government bonds, treasury bills, or other short-term bills for the purpose of increasing its income.

Article 10

A Central Government Debt Service Fund Management Committee (hereinafter, “the Committee”) shall be set up for the revenues, expenditures, custody, and utilization of the Fund. The Committee shall have seven to nine members, one of whom shall serve as the convener, in which position the Minister of Finance shall serve on a concurrent basis or appoint another person to serve on a concurrent basis. The remaining members shall be appointed by the MOF, with representatives from relevant agencies serving on a concurrent basis.

The number of members of either gender on the Committee shall not be less than one-third of the total number of members.

Article 11

The tasks of the Committee shall be as follows:

1.Deliberation of the revenues, expenditures, custody, and utilization of the Fund.

2.Evaluation of the implementation of the utilization of the Fund.

3.Deliberation of the Fund’s annual budget and final accounts.

4.Other relevant matters.

Article 12

The Committee shall hold a meeting once every six months and may hold interim meetings when necessary. All meetings shall be convened by the convener, and relevant persons may be invited to attend in a non-voting capacity. In the event the convener is unable to be present at a meeting, the convener shall designate a member as deputy.

Article 13

The Committee shall have one executive secretary, in which position the Director-General of the National Treasury Administration, MOF, shall serve on a concurrent basis. It shall have several staff members, who shall be appointed by the MOF from among its current employees to serve on a concurrent basis.

Article 14

The compilation and implementation of the budget and preparation of final accounts for the Fund shall be handled in accordance with the Budget Act, Accounting Act, Financial Statement Act, Audit Act, and related laws and regulations. 

Article 15

An accounting system shall be duly prescribed for the handling of accounting matters of the Fund.

Article 16

If there is any surplus in the Fund's annual final accounts, it shall be accumulated or paid to the National Treasury according to statutory requirements.

Article 17

When the Fund is closed, its accounts shall be settled, and the remaining equity shall be paid into the National Treasury.

Article 18

These Regulations shall be enforced from the date of issuance.