Annex B : Arrears and pending payment
Differentiating Between ‘Arrears’ and ‘Pending Payments’ 1. Since 2008, the Loi de Réglèment presents the balance of the different components of the treasury account (balance cumulée des comptes). This allows seeing the payments pending at the end of every year by different categories. Table 1 shows the movements of the account “providers of goods and services” (fournisseurs) for 2008. The number shown under balance d’entrée – credit (FBU 304 million) represent the payments to providers of goods and services pending from 2007. The numbers presented under mouvements – debit and mouvements – credit, represent, respectively, the payments to and claims from providers of goods and services. Mouvements registered under année courante (current year) represent claims and payments done for operations budgeted in 2008. Mouvements registered under année précedente (previous year) correspond to payments of claims dating from 2007 or before. The numbers registered under solde fin de période represent the balances that will be carried over to 2009: in practical terms, this means that, in 2009, the Burundi Government will have to pay FBU 3.068 billion (the government got claims for 103 and paid 100) to providers for goods and services received in 2008, plus FBU 115 million for goods and services received in 2007 or even before (the government had a stock of pending payments for 304 million and paid 188). Table B.1 . Balance of the account Fournisseur, 2008 2008 Balance d'Entrée Débit Crédit
Mouvements Débit
Crédit
Solde fin de période Débit Crédit
401.Fournisseurs Année Courante 0 0 100,403,066,953 103,471,292,210 0 Année antérieure 0 304,125,295 188,533,654 0 0 Source: Loi de Réglèment 2008
3,068,225,257 115,591,641
2. The Burundi legislation sets a deadline of 60 days to cover payments; otherwise, the balance will become an arrear. This means that, in practice, the FBU 115 million registered under Solde fin de période – credit is an arrear: this number is the remaining balance of the accounts that were unpaid in 2007 (304 million) of which a portion (188 million) were paid in 2008. It is less clear whether the 3.068 billion registered under année courante are arrears: they might be claims made, for instance, on December 31th 2008 that will be disposed regularly within the 60 days deadline, or they might be claims made since January 1st 2008. It is impossible to determine the extent to which a number registered as pending payment for the current year is an arrear. 3. Inferences on the accumulation of arrears can be made on the basis of the data presented in the Lois de Réglèment. Table 2 shows the balance of the account Fournisseurs for 2009: the number presented under Balance d’entrée – credit for année antérieure (FBU 3.183 billion) is the addition of the end of year balances (solde fin de période) for 2008 127