Article 1: These regulations are formulated in order to maintain local financial stability, prevent and resolve financial risks, and ensure that special borrowing funds are used exclusively and returned when due. Article 2 The term “special borrowing” as mentioned in these regulations refers to the re-loan issued by the People’s Bank of China with the approval of the State Council and the financing provided to the provincial (autonomous region, municipality) government (hereinafter referred to as the provincial government) through designated local commercial banks. It is used to resolve the personal debts and legal foreign debts of local rural cooperative foundations, various trust investment companies, urban commercial banks, and urban credit cooperatives that are to be closed down. Special loans must be used and managed in accordance with the "Law of the People's Republic of China on the People's Bank of China" and the relevant provisions of the People's Bank of China's re-lending management. Article 3 The provincial government shall report to the State Council based on the assets and liabilities of the above-mentioned local financial institutions and non-financial institutions and the repayment ability of government debts, when it is still difficult to solve the payment risk by raising repayment funds from multiple parties. Local financial risks and their handling are requested to be approved by the State Council for special borrowing from the central government. Article 4 Based on the application approved by the General Office of the State Council, the People's Bank of China, the Ministry of Finance and other relevant departments shall review the financial risk situation and payment fund gap of the province (autonomous region, municipality directly under the Central Government); among which the People's Bank of China is mainly responsible for undertaking The Ministry of Finance is mainly responsible for reviewing the financial revenues and expenditures of the province (autonomous region, municipality directly under the Central Government) in recent years, the fiscal budget of the current year, and the fiscal budget arrangements during the repayment period. and the government’s actual repayment ability. In accordance with the review opinions, the Ministry of Finance, the People's Bank of China and other relevant departments jointly issued a document proposing that the provinces (autonomous regions and municipalities directly under the Central Government) borrow special funds from the central government and submitted them to the State Council for approval. Article 5 The provincial government shall submit an application to the Ministry of Finance based on the borrowing report approved by the State Council and promise to repay the special loans issued by the People's Bank of China to the provinces (autonomous regions and municipalities directly under the Central Government) as scheduled. If the principal and interest of the special loan cannot be repaid on time, the Ministry of Finance shall make a The People's Bank of China will deduct the amount from the central government's transfer payment funds and tax refund funds to the province (autonomous region, municipality directly under the Central Government). Article 6: The Ministry of Finance receives a report from the provincial government promising to repay the loan as scheduled, and after review, sends a reply to the provincial government with a copy to the People's Bank of China. It is clarified that if the provincial government cannot repay the principal and interest of the re-loan on time, the Ministry of Finance will deduct the transfer payment funds and tax refund funds to the province (autonomous region, municipality directly under the Central Government) according to the deduction commitment letter and other documents provided by the People's Bank of China. Article 7 The People's Bank of China and the State Council's approval opinions on the joint documents of the Ministry of Finance, the People's Bank of China and other relevant departments and a copy of the Ministry of Finance's reply to the government's commitment application shall issue loan limits to the local branch and business management department. After signing a loan agreement with the provincial (autonomous region, municipality) government, the branch or business management department of the People's Bank of China will issue a loan limit to the central branch or business management department where the government is located within the loan limit issued by the head office. Article 8 The central branch or business management department at the location of the government can only issue loans after signing a loan contract with the local commercial bank that underwrites the loan based on the loan limit issued by the branch. Local commercial banks set up off-balance sheet temporary accounts to record the use of the re-loan. This re-loan is subject to special account management and the funds are earmarked for special purposes. Local commercial banks have no control over this re-loan and do not reflect operating income. Article 9 The period of use of special loans is generally six to eight years. The loan contract shall be implemented once and the loan IOU shall be signed annually. Special loans accrue interest from the date they are transferred to the special account. Interest is paid quarterly during the loan period. The principal will be repaid starting from the second year or according to the agreement. Part or part of the loan can also be repaid in advance. The special loan interest rate is calculated at an annual interest rate of 2.25%. Article 10 The branches and business management departments of the People's Bank of China shall strengthen the supervision and inspection of the use of special loans, assign dedicated personnel to conduct separate assessments, and be responsible for the recovery when due; the provincial (autonomous region, municipality) governments shall be fully responsible for the use of loans, according to Local financial institutions and non-financial institutions will allocate funds based on the payment progress of personal deposits to prevent governments at all levels from misappropriating special loans for other purposes. It is necessary to implement the repayment plan year by year and include the annual repayment in the budget of the province (autonomous region and municipality directly under the Central Government) to ensure that the special loan is returned on time. Article 11 These regulations shall come into effect from the date of issuance.