Measures for the Administration on the Loans and Grants by International Financial Organizations and Foreign Governments
Measures for the Administration on the Loans and Grants by International Financial Organizations and Foreign Governments
Measures for the Administration on the Loans and Grants by International Financial Organizations and Foreign Governments
Order of Ministry of Finance [2006] No. 38
July 3, 2006
Chapter I General Provisions
Article 1 With a view to further regulating and strengthening the administration on the loans and grants by international financial organizations and foreign governments and effectively utilizing the funds, the present Measures are formulated under the relevant provisions of the State Council.
Article 2 The administration on the loans and grants by international financial organizations and foreign governments shall be subject to the present Measures.
Article 3 The Ministry of Finance shall be in charge of the administration on the loans and grants. It is the central administrative department for foreign debts of the government.
Article 4 The utilization of the loans and grants shall be in line with the development strategies of the national economy and society, embody the functions of public finance and promote the harmonious development of the economic society and urban and rural regions.
Article 5 The raising, utilization, repayment of the loans shall accord with the principle of unifying the liabilities, rights and interests, achieve the sustainability and sound circulation of debts and can effectively prevent and eliminate the risks of debts.
Article 6 For the purpose of the present measures:
1. The term "loans" means the loans granted by international financial organizations and foreign governments.
2. The term "loans by international financial organizations" means the loans forming foreign debts of the government, which are uniformly raised by the Ministry of Finance on behalf of the state, upon the approval of the State Council, from the World Bank, Asian Development Bank, International Agriculture Development Fund, European Investment Bank and other international financial organizations, as well as the joint financing employed together with the aforesaid loans.
3. The term "loans by foreign governments" means the loans forming foreign debts of the government, which are uniformly raised by the Ministry of Finance on behalf of the state, upon approval of the State Council, from foreign governments and the Nordic Investment Bank, as well as the joint financing employed together with the aforesaid loans.
4. The term "grants" means the international grants which are accepted by the Ministry of Finance on behalf of the state and upon the approval of the State Council, which are not employed together with the loans.
Chapter II Administrative Institutions and the Functions Thereof
Article 7 The Ministry of Finance shall manage the loans and grants in a centralized manner, and shall fulfill the functions as follows:
1. determining the principle for the administration on the loans and grants and formulating basic rules and regulations thereon,
2. making plans on loaning together with the relevant departments of the State Council,
3. planning and carrying out the work related to the foreign loans and grants as a whole, and negotiating, talking and concluding legal documents with international financial organizations and foreign governments,
4. being responsible for the on-lending, sub-granting, utilization, repayment, counting and monitoring of the loans and grants, and
5. providing policy guidance, coordination and supervision on the activities in respect of loans and grants.
Article 8 A local department of finance is the representative of the creditor's rights and liabilities in respect of the loans of the government at the same level and is the administrative institution for loans and grants, and shall be in charge of the administration on the whole course of the loans and grants of its region.
Article 9 As regards a project directly on-lent or sub-granted by the Ministry of Finance to the relevant departments of the State Council, the relevant departments of the State Council shall determine the central project executive institutions, which shall be in charge of organizing the concrete execution of the project.
Article 10 As regards an association project across two or more provinces, autonomous regions and municipalities directly under the Central Government, directly sub-lent or sub-granted by the Ministry of Finance to the local governments, if it is necessary for the relevant departments of the State Council to organize or coordinate the work, the relevant departments of the State Council shall determine a central project coordination institution, which shall be in charge of providing guidance, organizing and coordinating the work in respect of the project.
Article 11 As regards a loan project which shall be repaid by a local government or a project under a grant accepted by a local government, the local government shall determine a local project executive institution, which shall be in charge of organizing and executing the project.
Article 12 The central project executive institution, central project coordination institution or local project executive institution shall be subject to the guidance and supervision of the finance departments at the same level, and shall submit their plans on operating fund disbursements to the finance departments at the same level for examination and approval or for archiving purpose.
Chapter III Loan Raising
Article 13 The raising of a loan includes the loan application, appraisal and evaluation, negotiating and talking with the foreign party, subscription and entry into force of the legal documents on the loan, determination of on-lending relationship as well as clarification of repayment liabilities.
Article 14 Where a region plans to use a loan by an international financial organization, the finance department of the province, autonomous region, municipality directly under the Central Government, city specially designated on the state plan, or the Finance Bureau of Xinjiang Production and Construction Corps (hereinafter referred to as the provincial finance department) shall, on behalf of the government at the same level, file an application for the loan with the Ministry of Finance.
Where a relevant department of the State Council or any other institution plans to use a loan by an international financial organization, it shall file an application for the loan with the Ministry of Finance.
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