The administrative organ cannot be the subject and borrower of the loan, nor can it obtain the loan certificate. If the loan has been made, the contract will be invalid, and the borrower will return it to the lender and give the responsible person corresponding punishment.

The central government can act as a borrower, while the local government can not act as a borrower directly in theory, but it can designate the borrower to complete the loan and achieve the purpose of financial financing. Government loan refers to the funds borrowed through the government loan agreement signed between China and foreign countries.

According to the provisions of the General Rules for Loans, the loan object should be an enterprise (institution) legal person, other economic organizations, individual industrial and commercial households or a natural person with full capacity for civil conduct that has People's Republic of China (PRC) nationality and has been approved and registered by the administrative department for industry and commerce (or authority).

Extended data

The main body of investment in local capital construction projects is the local government. According to the principle of "whoever uses money borrows money", the main body of borrowing money can only be local governments. According to the general principles of loans, there are strict restrictions on the conditions of borrowers, which excludes the possibility of local governments borrowing directly from commercial banks.

In order to solve the local capital construction project funds, the local government can designate borrowers, with the future budget funds of the local government as the repayment source and the credit of the local government as the guarantee, which can be called local government loans. Borrowers designated by local governments to borrow from banks have become the main means for local governments to raise funds.