The Ministry of Finance issued the specification of local government debt financing behavior of the document in May 3rd, are full of risk, no, but the document was released on the same day, the Commission also issued a document, support PPP item company or social capital can issue special bonds to raise funds PPP.
A comprehensive source of information management in cloud
On the eve of youth day, the Treasury quietly threw a deep water bomb.
Notice on further regulating the behavior of local government debt financing
All provinces, autonomous regions and municipalities directly under the central government, the finance department (bureau), the national development and Reform Commission, the judicial department (bureau), the people’s Bank of China Shanghai headquarters, all branches and business management departments, the provincial capital (capital) City Center branch, deputy provincial city center branch, the Banking Bureau, securities regulatory bureau:
The 2014 amendments to the budget law and the State Council on strengthening local government debt management advice (Guo Fa 2014 No. 43) since the implementation of the local governments at all levels to accelerate the establishment of a standardized debt financing mechanism, actively play the government regulate debt support to the economic and social development, to prevent and resolve financial risks, has achieved results. But some areas of illegal debt guarantees have occurred, local risk can not be ignored. In order to implement the Party Central Committee and State Council decision to deploy, firmly hold the bottom line does not occur regional systemic risk, is to further regulate the local government debt financing behavior related matters as follows:
Notice of the Ministry of finance, development and Reform Commission, the Ministry of justice, the people’s Bank, the CBRC, CSRC jointly issued six ministries, from the point of view, to prevent and resolve fiscal and financial risks, local risk and not firmly hold regional systemic risk, risk prevention is the core of meaning.
First, a comprehensive organization to carry out the rectification work of local government financing guarantees
The provincial government should conscientiously implement the State Council issued the local government debt risk emergency plan (State Office letter 2016 No. 88) requirements, pay close attention to the establishment of government debt management leadership team, guidance and supervision departments at the same level and county government to further improve the risk prevention mechanism, combined with the company’s debt financing platform launched in 2016 statistics, a local government and its departments financing behavior thoroughly investigation as soon as possible, to urge the relevant departments, the municipal and county governments to strengthen equal consultation and social capital side, to perfect the contract clause, classification of proper disposal, comprehensive correction of financing guarantee does not regulate the behavior of local government. The work should be in July 31, 2017 before the clean-up rectification in place, for overdue correction or rectification is not in place, the relevant departments of the city and county governments, the provincial government debt management leading group shall be submitted to the provincial government according to the law to pursue those responsible. The Financial Ombudsman Office of the Ministry of finance should closely follow the progress of local work and report the problems in time.
Have specific tasks:
1, pay close attention to the establishment of government debt management leading group
2, as soon as possible to organize a local government and its Department of financing guarantee behavior investigation… Comprehensive correction of the local government does not regulate the financing guarantee behavior.
Have clear time requirements:
The work shall be cleaned before rectification in place in July 31, 2017
There are clear punitive measures:
Overdue correction or correction is not in place, etc., according to the law to investigate the responsibility of the responsible person.
Have supervision personnel:
The Financial Ombudsman Office of the Ministry of finance should closely follow the progress of local work and report the problems in time.
Everyone seems to be less concerned about the Ministry of Finance inspectors? In fact, it is very important, there is no mechanism to monitor the obvious thing is impossible. In Chongqing Qianjiang District, responsible person due to illegal debt guarantees incident, by the Ministry of Finance in Chongqing City Finance Office of the Ombudsman confirmation, in Shandong city of Zoucheng illegal borrowing security incident, by the Ministry of Finance in Shandong Province, the Financial Ombudsman office confirmation.
Two, strengthen financing platform financing management
Accelerate the transformation of government functions, handle the relationship between government and market, to further standardize the management of corporate financing behavior and financing platform, promote the company’s financing platform as soon as the transition to the market operation of state-owned enterprises, in accordance with the law and regulations to carry out market financing, local government and its subordinate departments shall not interfere with the financing platform company daily operations and market financing. The local government shall not be public assets, land reserves into the company financing platform, not committed to reserve land transfer revenues expected as the company’s financing platform debt financing, not the normal operation of the use of government resources financial institutions behavior intervention. Financial institutions shall be in accordance with the law to support the financing of the financing platform companies, the development of the real economy services. To further improve the information disclosure mechanism, corporate debt financing platform financing at home and abroad, should be active to the creditors written statement does not assume the functions of government financing, and clearly since January 1, 2015 the new debt law does not belong to the local government debt. Financial institutions shall strictly regulate financial management, strengthen risk identification and prevention, the implementation of corporate debt access conditions, according to the commercial principles to fulfill the relevant procedures, careful assessment of the borrower financial ability and the source of repayment. Financial institutions to provide financing for financing platform companies and other enterprises, may not require or accept the local government and its departments in the form of guarantees, letters of commitment, letters of comfort and other forms of security. The illegal local government debt guarantees the formation of debt, in accordance with the Notice of the general office of the State Council on the issuance of local government debt risk emergency plan (State Office letter 2016 No. 88), the Ministry of Finance Concerning the issuance of local government debt risk classification disposal refers to the South Circular (FB 2016 No. 152) to properly handle.
Government and financing platform:
The financing platform as soon as possible to the market transition, local government financing platform, not without intervention (commitment) injection of public assets, land reserve; debt financing platform should take the initiative to a written statement does not assume the functions of government financing.
Financial institutions to provide financing for financing platform companies and other enterprises, may not require or accept the local government and its departments in the form of guarantees, letters of commitment, letters of comfort and other forms of security.
Three, standardize the government and social capital cooperation behavior
Local government should regulate the cooperation between government and social capital (PPP). Allow local governments to separate or capital and social capital jointly funded the establishment of various types of investment funds, regulate the operation of the market in accordance with the law, in accordance with the profit and risk sharing principle, key areas to guide social capital investment in economic and social development and the weak link, the government may be appropriate to none. The local government not to borrow money funded the establishment of various types of investment funds, the local government is prohibited by PPP, government funded various investment funds illegal disguised debt, unless otherwise prescribed by the State Council, the local government and its subordinate departments involved in the PPP project, the establishment of government funded various investment funds, shall not in any way repurchase commitments of social capital the principal shall bear the social capital investment, party in any way principal investment losses, shall not in any way to the social capital promised a minimum income, not on the limited partnership fund any additional equity investment in terms of debt in disguise.
Xiaobian is for PPP, the government guide disguised financing from the fund, see the local government through disguised financing bonds and other ways to guarantee commitment, repurchase arrangements, Ming shares, the project will be packaged into a PPP project, the actual income and risk sharing is not really PPP, some government guide fund a commitment to repurchase shares, the share of the limited partnership, make up the profit behavior, industry insiders estimate that more clearly, now this way. If there is any more, the terms will be added.
Four, further improve the standard of local government debt financing mechanism
Fully implement the strategy of governing the country by law, strictly implement the provisions of the budget law and the 2014 Document No. 43, standardize the financing mechanism of local government debt, local government debt will take the issue of local government bonds in the limits approved by the State Council, in addition to local government and its subordinate departments shall not in any way of borrowing debt. Local governments and their departments shall not be in the form of documents, minutes of meetings, leadership instructions and other forms, requirements or decisions for the government to borrow or disguised debt for the government. Allow local governments with money may establish or acquire Guarantee Corporation (including all kinds of financing guarantee fund), a market-oriented operation of the financing guarantee system, encourage government funded Guarantee Corporation in accordance with the law and regulations to provide financing services, local government in accordance with the law within the scope of capital contribution to the Guarantee Corporation to assume responsibility. In addition to foreign governments and international economic organizations loans, the local government and its subordinate departments shall not for any unit or individual debt guarantees in any way, no commitment to any other units and individuals bear liability financing. The local government should make the bond issuance plan scientifically, reasonably control the rhythm and scale according to the actual demand, improve the transparency of the bond and the benefit of using the funds, and establish the information sharing mechanism.
There is nothing to say about this small series, the feeling is that the central government to further reduce the tolerance of local government debt guarantees.
However, in this document issued on the same day (May 3rd), the Commission also issued a document on the office of the national development and Reform Commission issued the government and social capital cooperation (PPP) project notice special bond issue guidelines, support PPP item company or social capital can issue special bonds to raise funds PPP.
The guidelines pointed out that the PPP project can be a form of special debt bonds can be ordinary corporate bonds, project income bonds can also be. With respect to the Ministry of finance this is full of risk and no document, the NDRC document there are a lot of support and encouragement, can be said to close a door, but opened a window.
Five, the establishment of inter departmental joint monitoring and prevention mechanisms
To improve the statistical monitoring mechanism by the finance department in conjunction with the development and reform, the people’s Bank, the CBRC, CSRC and other departments of the construction of large data monitoring platform, statistical monitoring of government expenditure items and long-term financing platform companies borrowing or issuing bank loans, asset management products, corporate bonds, corporate bonds, non-financial corporate debt financing instruments and so on, to strengthen the Department of information sharing and data validation, regularly informed of the monitoring results. To carry out inter departmental joint supervision, finance, development and reform, the establishment of the judicial administrative organs, the people’s Bank, the CBRC, CSRC and other departments and institutes of certified public accountants, Asset Evaluation Association, lawyers association and other industry organizations to participate in the self regulatory mechanism of the illegal behavior of local government and its subordinate departments, companies, financial institutions, intermediaries financing platform and legal service providers to strengthen inter departmental joint discipline, the formation of regulatory efforts. The local government and its subordinate departments illegal borrowing or guarantees, shall be prosecuted in accordance with regulations directly responsible personnel in charge and other persons directly liable; financing platform for the company to engage in or participate in illegal financing activities, in accordance with the law and regulations for enterprises and related responsible person responsible for financial institutions; illegal to place the government provides financing requirements, or to accept the local government guarantee commitment, in accordance with the law and regulations for financial institutions and the relevant responsible person and persons responsible for credit approval; intermediary institutions, legal service agencies illegal financing platform company issued audit report, asset evaluation report, credit rating reports, legal opinions, in accordance with the law regulations held legal services agency, and related personnel responsibilities.
1, data monitoring platform
With respect to the data platform debate will line three supervision and coordination mechanism, this mechanism involves a significantly greater, but before line three things are final and not conclusive, but this article is already decided that the construction of big data monitoring platform.
Do not say anything else, the Commission China Fund Industry Association, the following private placement system has a lot of products, right?