Article 1 In order to expand the effective domestic demand and promote the sustained and stable development of the national economy, the State Council has decided to issue a certain amount of national debt 1998, which will be lent by the Ministry of Finance to provincial governments (including provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans, the same below) for local economic and social development and construction projects. In order to strengthen the management of loan funds, these measures are formulated. Article 2 The people's governments at the provincial level shall balance the comprehensive financial resources of the province, determine and implement the sources of repayment funds according to the characteristics of construction projects, and make unified borrowing, overall planning and repayment throughout the province. As the creditor's rights representative and debtor's representative of the people's government, the provincial finance department is responsible for the debt service of the Ministry of Finance. Article 3 Lending funds shall be directly implemented into specific projects. The principles for determining the project are as follows: first, it is mainly used for projects under construction or projects that have completed preliminary work, and new projects generally take about 2 years to complete to prevent repeated construction; The second is infrastructure projects; Third, the determination of the project should not only consider the needs of economic and social development in the region, but also consider the comprehensive repayment ability of the region. Article 4 The loan funds shall be used for the following construction projects: (1) Investment in agriculture, forestry and water conservancy; (2) investment in traffic construction; (3) investment in urban infrastructure and environmental protection; (4) Construction and transformation of urban and rural power grids; (5) Construction projects specified by other countries. The loan funds should be arranged to use the domestic matching funds needed for projects financed by international financial organizations such as the World Bank and foreign governments. Article 5 The local provincial planning and finance departments shall, according to the above-mentioned principles for determining the projects, the use of the reloaned funds, the local economic and social development planning and the possibility of financial resources, propose the construction scale and projects (selected by the planning department) using the reloaned funds, and report them to the State Development Planning Commission and the Ministry of Finance after being audited by the provincial people's government, or the provincial people's government shall report them to the State Development Planning Commission and send a copy to the Ministry of Finance. Article 6 The State Development Planning Commission and the Ministry of Finance shall report the construction projects and required funds reported by the provinces to the leading group for accelerating infrastructure construction. To speed up the infrastructure construction leading group in accordance with the basic construction procedures, review the construction projects and required funds submitted by the provinces that use the reloan funds, refer to the comprehensive financial resources available for construction in various places, initially determine the construction projects and required funds that use the reloan funds in various places, and report them to the State Council for approval. Article 7 The Ministry of Finance and the people's government at the provincial level shall, according to the approved construction projects using loan funds and the required funds, sign an agreement on lending between the central and local governments (countersigned by the provincial finance department). The lending agreement between the central government and the local government includes the use items of the lending funds, the administrative affiliation of the projects, the lending amount, the lending period, the lending interest rate, the repayment commitment, the penalty for breach of contract and so on. "Central to local lending agreement" copied to the State Planning Commission. Article 8 According to the Central-to-Local Lending Agreement, the provincial finance department and the relevant competent department at the same level or the people's government at a lower level signed the Agreement on the Use of Loan Funds for Construction Projects. The agreement on the use of loan funds for construction projects shall be copied to the Ministry of Finance, the Office of the Provincial Financial Ombudsman of the Ministry of Finance and the State Development Planning Commission. Article 9 The repayment period of loans to developed coastal areas (including Guangdong, Fujian, Zhejiang, Shanghai, Jiangsu, Shandong, Tianjin, Beijing, Liaoning, Shenzhen, Xiamen, Ningbo, Qingdao and Dalian) is 6 years (the repayment period for rural power grids is 15), including a two-year grace period (the grace period for rural power grids is 10) The repayment period of loans to the central and western regions is 10 years (the repayment period of rural power network loans is 15 years), in which the grace period is 2 years (the grace period of rural power network is 10 years) and the annual interest rate is 5%. The loan funds shall bear interest from the date of disbursement by the Ministry of Finance. The provincial financial department must repay the principal and interest to the Ministry of Finance within the prescribed time limit. Article 10 The provincial budget shall open a special account for loan funds in state-owned commercial banks. According to the central-local lending agreement, the Ministry of Finance will allocate the lending funds in batches, in time and in full to the special account for lending funds opened by the provincial general budget in the bank. Article 11 The provincial finance department shall timely and fully allocate the lending funds to the finance department at the same level of the project implementation unit or the competent department of the project according to the Central-local Lending Agreement and the Agreement on the Use of Lending Funds for Construction Projects, and the finance department at the same level will allocate the lending funds to the project implementation unit. Twelfth project implementation units and their competent departments should use the refinancing funds in strict accordance with the purposes stipulated in the Agreement on the Use of Re-lending Funds for Construction Projects, and manage them in accordance with the financial management regulations for capital construction, so as to improve the efficiency in the use of funds. Thirteenth within 30 days after the end of the year, the provincial finance department shall submit the use of local construction project loan funds to the Ministry of Finance and the local financial Ombudsman office of the Ministry of Finance. Article 14 The sources of funds for the provincial people's government to repay the principal and interest of the refinancing funds are the comprehensive financial resources of the whole province, including: (1) the principal and interest of the refinancing funds returned by the project implementation unit with the proceeds; (2) Capital construction and other funds arranged in the budget; (three) government funds included in the budget management; (four) the part of extra-budgetary funds used for construction; (5) Other funds.

The provincial finance department shall, under the leadership of the people's government, jointly with the relevant departments and units, do a good job in forecasting and preparing the capital demand of local lending funds to repay the principal and interest in advance, and ensure that the principal and interest of lending funds are returned in full and on time.