Administrative Measures for the Loans and Grants from International Financial Organizations and Foreign Governments
Administrative Measures for the Loans and Grants from International Financial Organizations and Foreign Governments
Administrative Measures for the Loans and Grants from International Financial Organizations and Foreign Governments
Order of the Ministry of Finance [2016] No.85
October 11, 2016
The latest Administrative Measures for the Loans and Grants from International Financial Organizations and Foreign Governments, which is a revision to Order of the Ministry of Finance [2006] No.38 and has been adopted at the executive meeting by the Ministry of Finance following deliberation, is hereby promulgated for implementation as of January 1, 2017.
Lou Jiwei, Minister of Finance
Administrative Measures for the Loans and Grants from International Financial Organizations and Foreign Governments
Chapter I General Provisions
Article 1 These Measures are enacted according to the Budget Law of the People's Republic of China and relevant laws and regulations with a view to regulating the management of the loans and grants from international financial organizations and foreign governments, preventing the government from debt risk and improving the utilization of the funds.
Article 2 These Measures apply to the loans and grants from international financial organizations and foreign governments.
Article 3 For the purpose of these Measures, "loans" refer to the loans in form of foreign debts raised by the Ministry of Finance on behalf of the state upon the approval of the State Council, as well as the co-financing used in combination with the aforesaid loans.
For the purpose of these Measures, "grants" refer to the international grants received by the Ministry of Finance itself or on behalf of the state upon the approval of the State Council as the recipient which are not subject to combined use with loans.
Article 4 The Ministry of Finance as the agency for management of foreign debts is responsible for the management of the loans and grants nationwide.
Local finance departments as the agencies for management of local government debts are responsible for the management of the loans and grants within their jurisdiction.
Article 5 The use of the loans and grants shall embrace the concept of promoting innovative, coordinated, green, open and share development, follow the national economic and social development strategy and the medium-term fiscal planning, reflect the function of public finance, and facilitate sustainable development.
The loans and grants can be used in many ways including project investment and financing, capacity building and policy consultation.
Article 6 The management of the loans and grants is subject to the principle of centralized raising, proper size, targeted management, clear rights and responsibilities, performance orientation and controllable risks.
Articles 7 Given the liability taken on by the government, loans are categorized into those repayable and those guaranteed by the government.
The loans repayable by the government are incorporated into the budget and debt limit of the government concerned, and the revenue, expenditure and payment of principal and interest thereof shall be classified as the general public budget.
The loans guaranteed by the government are not incorporated into the debt limit of the government concerned. When assuming and performing the guarantee by law, the government concerned shall repay the loan from its budget, which shall be classified as the general public budget.
Article 8 The grants are incorporated into the general public budget of the Central Government. The grants with purpose specified by the provider shall be reviewed under the budget management process before being incorporated into the departmental budget of the Central Government or the transfer payments to local governments by the Central Government; and the grants with no specified purpose shall be subject to the arrangements of the Central Government.
Article 9 The Ministry of Finance may appropriate the loans to provincial governments (including the cities specially designated in the state plan, similarly hereinafter) or relevant departments (including the directly affiliated agencies, similarly hereinafter) of the State Council. Provincial finance departments may transfer the loans appropriated by the Ministry of Finance, level by level, to the governments at lower levels or the relevant departments and entities.
The Ministry of Finance may on-lend the loans to provincial governments, relevant departments of the State Council, the state-owned enterprises directly under the Central Government ("central SOEs"), financial institutions and others. Provincial finance departments may appropriate the loans onlent to the governments at lower levels or relevant departments and entities; or on-lend the loans onlent to the governments at lower levels or relevant departments and entities level by level.
The Ministry of Finance may allocate the grants received to provincial governments, relevant departments of the State Council, central SOEs and other institutions.
Chapter II Responsibilities of the Agencies Involved
Article 10 The Ministry of Finance is responsible for:
1. raising loans and receiving grants from foreign parties in a centralized manner;
2. formulating the regulations on the loans and grants;
3. developing the loan planning together with relevant departments of the State Council;
4. guiding, coordinating and supervising the performance delivery about the loans and grants, including project initiation application, preliminary work, appropriation or on-lending of the loans, grants allocation, use of funds, project procurement, statistics and monitoring, debt repayment, performance management, summary and promotion of achievement;
5. carrying out the foreign-related work for the loans and grants in a coordinated way, advancing the preparation work, negotiating with foreign parties, signing relevant legal documents, and going through the enforcement formalities;
6. incorporating the loans repayable by the government into the budget and debt limit, strengthening the monitoring over the loans guaranteed by the government, establishing a debt risk warning and emergency response mechanism to prevent and mitigate debt risks; and
7.
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Order of the Ministry of Finance [2016] No.85
October 11, 2016
The latest Administrative Measures for the Loans and Grants from International Financial Organizations and Foreign Governments, which is a revision to Order of the Ministry of Finance [2006] No.38 and has been adopted at the executive meeting by the Ministry of Finance following deliberation, is hereby promulgated for implementation as of January 1, 2017.
Lou Jiwei, Minister of Finance
Administrative Measures for the Loans and Grants from International Financial Organizations and Foreign Governments
Chapter I General Provisions
Article 1 These Measures are enacted according to the Budget Law of the People's Republic of China and relevant laws and regulations with a view to regulating the management of the loans and grants from international financial organizations and foreign governments, preventing the government from debt risk and improving the utilization of the funds.
Article 2 These Measures apply to the loans and grants from international financial organizations and foreign governments.
Article 3 For the purpose of these Measures, "loans" refer to the loans in form of foreign debts raised by the Ministry of Finance on behalf of the state upon the approval of the State Council, as well as the co-financing used in combination with the aforesaid loans.
For the purpose of these Measures, "grants" refer to the international grants received by the Ministry of Finance itself or on behalf of the state upon the approval of the State Council as the recipient which are not subject to combined use with loans.
Article 4 The Ministry of Finance as the agency for management of foreign debts is responsible for the management of the loans and grants nationwide.
Local finance departments as the agencies for management of local government debts are responsible for the management of the loans and grants within their jurisdiction.
Article 5 The use of the loans and grants shall embrace the concept of promoting innovative, coordinated, green, open and share development, follow the national economic and social development strategy and the medium-term fiscal planning, reflect the function of public finance, and facilitate sustainable development.
The loans and grants can be used in many ways including project investment and financing, capacity building and policy consultation.
Article 6 The management of the loans and grants is subject to the principle of centralized raising, proper size, targeted management, clear rights and responsibilities, performance orientation and controllable risks.
Articles 7 Given the liability taken on by the government, loans are categorized into those repayable and those guaranteed by the government.
The loans repayable by the government are incorporated into the budget and debt limit of the government concerned, and the revenue, expenditure and payment of principal and interest thereof shall be classified as the general public budget.
The loans guaranteed by the government are not incorporated into the debt limit of the government concerned. When assuming and performing the guarantee by law, the government concerned shall repay the loan from its budget, which shall be classified as the general public budget.
Article 8 The grants are incorporated into the general public budget of the Central Government. The grants with purpose specified by the provider shall be reviewed under the budget management process before being incorporated into the departmental budget of the Central Government or the transfer payments to local governments by the Central Government; and the grants with no specified purpose shall be subject to the arrangements of the Central Government.
Article 9 The Ministry of Finance may appropriate the loans to provincial governments (including the cities specially designated in the state plan, similarly hereinafter) or relevant departments (including the directly affiliated agencies, similarly hereinafter) of the State Council. Provincial finance departments may transfer the loans appropriated by the Ministry of Finance, level by level, to the governments at lower levels or the relevant departments and entities.
The Ministry of Finance may on-lend the loans to provincial governments, relevant departments of the State Council, the state-owned enterprises directly under the Central Government ("central SOEs"), financial institutions and others. Provincial finance departments may appropriate the loans onlent to the governments at lower levels or relevant departments and entities; or on-lend the loans onlent to the governments at lower levels or relevant departments and entities level by level.
The Ministry of Finance may allocate the grants received to provincial governments, relevant departments of the State Council, central SOEs and other institutions.
Chapter II Responsibilities of the Agencies Involved
Article 10 The Ministry of Finance is responsible for:
1. raising loans and receiving grants from foreign parties in a centralized manner;
2. formulating the regulations on the loans and grants;
3. developing the loan planning together with relevant departments of the State Council;
4. guiding, coordinating and supervising the performance delivery about the loans and grants, including project initiation application, preliminary work, appropriation or on-lending of the loans, grants allocation, use of funds, project procurement, statistics and monitoring, debt repayment, performance management, summary and promotion of achievement;
5. carrying out the foreign-related work for the loans and grants in a coordinated way, advancing the preparation work, negotiating with foreign parties, signing relevant legal documents, and going through the enforcement formalities;
6. incorporating the loans repayable by the government into the budget and debt limit, strengthening the monitoring over the loans guaranteed by the government, establishing a debt risk warning and emergency response mechanism to prevent and mitigate debt risks; and
7.
......