Notice of the Ministry of Finance on Regulating Guarantee Acts of Local Public Finance

财政部关于规范地方财政担保行为的通知

Promulgating Institution: Ministry of Finance

Document Number: Cai Jin [2005] No. 7

Promulgating Date: 01/26/2005

Effective Date: 01/26/2005

颁布机关: 财政部

文      号: 财金[2005]7号

颁布时间: 01/26/2005

实施时间: 01/26/2005

Finance department (bureau) of all provinces, autonomous regions, municipalities directly under the Central Government or specially designated cities in the State plan, and finance bureau of the Xinjiang Production and Construction Corps,

    各省、自治区、直辖市、计划单列市财政厅(局),新疆生产建设兵团财政局: 

In light of the spirit of the leaders' instructions of the State Council regarding our Opinions on the Issues Concerning the Financial Guarantee for Urban Construction (Package) Projects Loans Granted by China Development Bank (Cai Yu Han [2004] No. 15), and in order to regulate the guarantee acts of local public finance departments, the notice on issues concerning guarantees provided by local public finance departments is hereby made as follows:

    根据国务院领导对我部《关于国家开发银行城市建设(打捆)项目贷款有关财政担保问题的意见》(财预函[2004]15号)的批示精神,为了规范地方财政担保行为,现就有关地方财政担保问题通知如下:

1. Local public finance departments shall strictly abide by the provisions of relevant laws, and shall be prohibited from providing guarantees violating any regulation. Pursuant to the relevant provisions and judicial interpretation of the Budget Law and the Guaranty Law, local public finance departments may not budget for deficit. Local governments' budget arrangement at all levels shall be deliberated and adopted by the people's congress at the same level. If local governments provide guarantees by using part of their future fiscal revenues, they will, in other terms, fix part of their revenue and expenditure items before the adoption of such items by the people's congress. Therefore, this situation is in conflict with the provisions of the Budget Law as Article 8 of the Guaranty Law of China explicitly provides that "no state organ may act as a guarantor, unless it makes re-loans by using said loans from foreign governments or international economic organizations upon the State Council's approval". Therefore, local public finance shall strictly abide by the provisions of relevant laws, and shall stop undertaking guarantee liability for loans or other debts other than those provided by theGuaranty Law.

       一、地方财政应严格遵守有关法律规定、禁止违规担保。根据《预算法》和《担保法》的有关规定及司法解释,地方财政不得打赤字预算,地方各级政府预算安排应由同级人民代表大会审议并通过。地方政府以将来的部分财政收入作为担保,实际上是在人代会通过之前即将部分收入和支出项目固定下来,与《预算法》的规定相抵触。我国《担保法》第八条明确规定:“国家机关不得为保证人,但经国务院批准为使用外国政府或者国际经济组织贷款进行转贷的除外”。因此,地方财政应严格遵守有关法律规定,停止对《担保法》规定之外的贷款或其他债务承担担保责任。

2. If guarantee acts have already constituted, local governments shall enhance their credit awareness, make a reasonable arrangement for source of repayment, take practicable measures, and urge enterprises to seriously execute contracts and guarantee repayment.

       二、对于已构成担保行为的,地方政府要增强信用意识,合理安排还款来源,采取切实措施,督促企业认真履行合同,保证偿还。

3. Local public finance shall strengthen local governments' debt management including contingent liabilities arising from guarantee acts of local public finance, and shall keep the scale of debts of local governments within a reasonable and acceptable scope.

       三、地方财政应加强地方政府债务管理,包括由地方财政的担保行为而产生的或有债务,将地方政府债务规模控制在合理的、可承受的范围内。

Ministry of Finance

January 26, 2005

    财政部 

    二00五年一月二十六日