What is a foreign loan unit?

Foreign government lending institutions, foreign government lending institutions, are composed of several units. The institutions that determine whether to lend money to lenders and units are responsible for the selection and determination. Projects are mostly undertaken by government functional departments, and some are also undertaken by full-time foreign aid agencies.

Measures for the Administration of Loans and Grants from International Financial Organizations and Foreign Governments

Chapter 1 General Provisions Article 1 In order to further standardize and strengthen the management of loans and grants from international financial organizations and foreign governments, reasonable , Effective use of funds, these measures are formulated in accordance with the relevant regulations of the State Council. Article 2 These Measures shall apply to the management of loans (hereinafter referred to as loans) and grants from international financial organizations and foreign governments. Article 3 The Ministry of Finance is responsible for the management of loans and grants, and is the unified management department of the government's foreign debt. Article 4 The use of loans and grants shall conform to the national economic and social development strategies, reflect the public finance functions, and promote the coordinated development of the economy, society, and urban and rural areas. Article 5 The raising, use and repayment of loans shall reflect the principle of unity of responsibilities and rights, achieve debt sustainability and a virtuous cycle, and effectively prevent and resolve debt risks. Article 6 The meanings of the following terms in these Measures:

(1) Loans refer to loans from international financial organizations and foreign government loans;

(2) Loans from international financial organizations refer to With the approval of the State Council, the Ministry of Finance raises loans on behalf of the country from the World Bank, Asian Development Bank, International Fund for Agricultural Development, European Investment Bank and other international financial organizations to form government foreign debt, as well as joint financing used in conjunction with the above loans;

(3) Foreign government loans refer to loans that the Ministry of Finance, with the approval of the State Council, borrow on behalf of the country from foreign governments, the Nordic Investment Bank, etc. to form government foreign debts, other foreign loans approved by the State Council that are managed with reference to foreign government loans, and Co-financing to be used in conjunction with the above-mentioned loans;

(4) Grants refer to grants received by the Ministry of Finance or the Ministry of Finance as the recipient on behalf of the country with the approval of the State Council, and are not conditioned on the use of loans. of international grants. Chapter 2 Management Organization and Responsibilities Article 7 The Ministry of Finance shall implement unified management of loans and grants and perform the following responsibilities: (1) Study and determine the management principles of loans and grants, and formulate basic rules and regulations ;

(2) Work with relevant departments of the State Council to study and formulate loan plans;

(3) Coordinate external work on loans and grants, and negotiate with international financial organizations and foreign governments. Negotiate and sign legal documents;

(4) Responsible for the on-lending, transfer, fund use, repayment, statistics, monitoring, etc. of loans and grants;

(5) Responsible for loans and grants Provide policy guidance, coordination and supervision for grant-making activities. Article 8 The local finance department is the creditor's rights and debt representative of government loans at the same level and the centralized management agency for loans and grants. It is responsible for the entire process management of loans and grants in the region. Article 9 For projects that the Ministry of Finance directly transfers on loan or transfer to relevant departments of the State Council, the relevant departments of the State Council shall determine the central project execution agency, which shall be specifically responsible for the organization and implementation of the project. Article 10 If the Ministry of Finance directly transfers loans or grants to local governments for joint projects across provinces, autonomous regions, or municipalities directly under the Central Government that require organization or coordination by the relevant departments of the State Council, the relevant departments of the State Council shall determine a central project coordination agency, which shall be responsible for the unified guidance of the project. , organization and coordination work. Article 11 For a loan project for which a local government assumes debt or a project that receives a grant, the local government shall determine a local project execution agency, which shall be specifically responsible for the organization and implementation of the project. Article 12 The central project execution agency, the central project coordination agency and the local project execution agency shall accept the guidance and supervision of the financial department at the same level in terms of business operations, and the relevant expenditure plans shall be submitted to the financial department at the same level for review and approval or for filing. Chapter 3 Loan Financing Article 13 Loan financing includes loan application, review and evaluation, external consultation and negotiation, signing and taking effect of loan legal documents, determination of on-lending relationship and implementation of repayment responsibilities. Article 14 For places that intend to use loans from international financial organizations, the finance departments of provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning and the Finance Bureau of Xinjiang Production and Construction Corps (hereinafter referred to as the provincial finance departments) shall submit loan applications to the Ministry of Finance on behalf of the governments at the same level. Book.

Relevant departments of the State Council and other institutions that intend to use loans from international financial organizations shall submit loan applications to the Ministry of Finance. If the debt is borne by the local government, a repayment commitment letter issued by the provincial finance department should also be attached.

The loan application includes the following main contents:

(1) Purpose and necessity of the loan;

(2) Main contents of the loan project;

(3) Sources of loan funds and supporting funds;

(4) On-lending and debt repayment arrangements. Article 15 The Ministry of Finance shall review the loan application and decide whether to include the loan application in the loan plan of the international financial organization in accordance with the provisions of Articles 4 and 5 of these Measures and the requirements of the lender. Article 16 Provincial finance departments shall organize reviews of relevant projects that have been included in the loan plans of international financial organizations and submit review opinions to the Ministry of Finance. The Ministry of Finance will decide whether to arrange external consultations and negotiations based on the review opinions.

The review matters mainly include:

(1) The debt burden and financial affordability of the provincial government;

(2) The financial, economic and social benefits of the loan project;

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(3) The financial status of the project unit and the implementation of supporting funds;

(4) On-lending arrangements, repayment responsibilities and sources of repayment funds, etc.

The categories of government foreign debt are

Article 1: These Measures are formulated in order to strengthen the management of foreign debt, standardize the behavior of borrowing foreign debt, improve the efficiency of the use of foreign debt funds, and prevent foreign debt risks.

Article 2 The term "foreign debt" as mentioned in these Measures refers to debts borne by domestic institutions to non-residents.

Article 3 The term "domestic institutions" as mentioned in these Measures refers to permanent institutions established in accordance with the law within the territory of China, including but not limited to government agencies, domestic financial institutions, enterprises, institutions and social groups.

Article 4 "Non-residents" as mentioned in these Measures refers to institutions and natural persons outside China and their non-permanent institutions established in accordance with the law in China.

Article 5: According to the type of debt, foreign debt is divided into foreign government loans, international financial organization loans and international commercial loans.

(1) Foreign government loans refer to the official credit borrowed by the Chinese government from foreign governments;

(2) Loans from international financial organizations refer to the Chinese government’s loans from the World Bank, Non-commercial credit lent by the Asian Development Bank, the United Nations Fund for Agricultural Development and other international and regional financial institutions;

(3) International commercial loans refer to loans lent by domestic institutions to non-residents commercial credit. Including:

1. Borrowing from overseas banks and other financial institutions;

2. Borrowing from overseas enterprises, other institutions and natural persons;

3. Overseas issuance Medium and long-term bonds (including convertible bonds) and short-term bonds (including commercial papers, large negotiable certificates of deposit, etc.);

4. Buyer's credit, deferred payment and other forms of trade financing;

5. International financial leasing;

6. Non-resident deposits;

7. Debts repaid with cash in compensation trade;

8. Others Types of International Business Loans.

Article 6 According to the division of repayment responsibilities, foreign debts are divided into foreign debts and non-foreign debts.

(1) Foreign debt refers to foreign debt borrowed by institutions authorized by the State Council on behalf of the country and repaid externally with a national credit guarantee.

(2) Non-foreign debt refers to other foreign debts other than external debt.

Article 7 The term "external guarantee" as mentioned in these Measures refers to the guarantee provided by domestic institutions to non-residents in the form of guarantee, mortgage or pledge in accordance with the Guarantee Law of the People's Republic of China. The potential external repayment obligations formed by external guarantees are contingent external debts.

Article 8 The state shall implement full-scale management of all types of foreign debts and contingent foreign debts. The use and repayment of foreign debts, external guarantees, and foreign debt funds must comply with relevant national laws, regulations, and these Measures.

Article 9 The National Development Planning Commission, the Ministry of Finance and the State Administration of Foreign Exchange are the departments of foreign debt management

Foreign government loans are more preferential than loans from other channels and have fewer restrictions on use

Yes, the gift component of foreign government loans is generally more than 35%, up to 80%. The interest rate of loans is generally 0.2%-3%, and some loans are interest-free. The loan repayment period is usually between 10 and 40 years, with a grace period of 2 to 15 years. It is a loan with relatively favorable conditions among the foreign loans currently borrowed by our country.

Because international financial organizations and foreign government agencies generally have high credit ratings, the interest rates on the loans they can provide are also low. However, the general conditions are a bit harsh, and there are restrictions on what can be purchased.

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1. Foreign government loans

Foreign government loans refer to preferential loans provided by the government of one country to the government of another country with a certain nature of donation. . It has the nature of intergovernmental development assistance or partial donation. It is also called bilateral loan in international statistics, and together with multilateral loans, it constitutes official credit. Its funding sources are generally divided into two parts: soft loans and export credits. The soft loan part is mostly government budget funds; the export credit part is credit financial funds. Bilateral government loans are credit relationships between governments. Government agencies or government agencies of the two countries negotiate and sign loan agreements to determine debts with contractual repayment obligations.

2. The main characteristics of foreign government loans are:

1. Foreign debt

Foreign government loans are first of all a kind of foreign debt, which is borrowed by the Chinese government from abroad. a debt. Except for those that have been reviewed and confirmed by the National Development and Reform Commission and the Ministry of Finance and returned to the state with the approval of the State Council, the rest will be repaid by the project owners and most of them will be guaranteed by local finance.

2. Preferential loan conditions

The gift component of foreign government loans is generally more than 35% and up to 80%. The interest rate of loans is generally 0.2%-3%, and some loans are interest-free. The loan repayment period is usually between 10 and 40 years, with a grace period of 2 to 15 years. It is a loan with relatively favorable conditions among the foreign loans currently borrowed by our country.

3. Restricted procurement

The proportion of third-country procurement for government loans in most countries (except Kuwait) is 15%-50%, that is, 50%-85% of the total loan is used for Purchase equipment and technology from the lending country. Under normal circumstances, you cannot freely choose the loan currency, and the exchange rate risk is high.

4. Investment restrictions

The total amount of foreign government loans is large and the use time is long, which facilitates the country to carry out unified planning, unified arrangements and centralized use according to the needs of economic development, which can maximize the to fully leverage its economies of scale. Foreign government loans are mainly used for government-led project construction, focusing on infrastructure, social development and environmental protection.

This concludes the introduction to foreign government loans, international financial organizations, and foreign government loans. Have you found the information you need?