[2014.12.16] Report of the news conference
Translated by Fang Yuanyuan
[14:30:00 December 16, 2014]Chen Qiang: ladies and gentlemen, good afternoon. Welcome to the press conference. Shandong government released the implementation views of the management of government debt. It is the first time for Shandong to release this kind of management views.
[14:32 December 16, 2014]Dou Yuming: Shandong government released the implementation views of the management of government debt on Dec.10. The main thought is to implement the national new budget law and the spirits of the papers of the States Council to build the unique government debt management system.
[14:33 December 16, 2014]Dou Yuming: first, the background of the implementation views. Over the years,the governments at all levels support the debt financing as an important means of development in terms of stable economic growth to strengthen infrastructure, protect and improve people's livelihood. It has played an important role, but there is also a lack of unified management, borrowing behavior is not standardized, debt grew rapidly, fiscal and financial risks inherent in the local area and other outstanding issues.
[14:35 December 16, 2014]Dou Yuming: second, the basic structure and the main content of the implementation views. There are seven parts. The three parts is about normative aspects of government debt borrowing, debt control, budget management, risk prevention and a clear policy. The forth to sixth is to stripping government financing platform company functions, properly handle the stock of debt, guarantee the follow-up in terms of the construction project financing, the measures proposed mechanism for the conversion of the old and new; Part VII, to strengthen organizational leadership, improve security measures, strict examination and supervision requirements proposed .
[14:35 December 16, 2014]Dou Yuming: the frist is to find out the methods to solve the debt problem. According to the State Council’s request, the implementation views is a good way to solve the problems of the local government debt system.
[14:36 December 16, 2014]Dou Yuming: second, set the new system to solve the problem of the debt. For the risk of the local government debt, the implementation views offers the management system as the deadline of the regional and systemic risk.
[14:39 December 16, 2014]Dou Yuming: third, make care of the responsibility and how to pay back the debt. It is mainly about the "levels of responsibility, who borrow who own risk" principle, the implementation of debt and risk control responsibilities.
[14:40 December 16, 2014]Dou Yuming: forth, make sure the debt management mechanism to solve "how turn" issue. After the establishment of the new management mechanism, the existing stock of debt, construction projects, financing platform and how to handle the transition? "Opinions" are clearly stated.
[14:43 December 16, 2014]Dou Yuming: "Opinions" is amending the channels and blocking illegal channels. It establishes a standardized system of government debt management which is a necessary requirement to promote the sustained and healthy economic and social development, and guard against and defuse financial risks and financial objective need for deepening the tax reform. The establishment of a modern financial system promotes the governance and management capabilities of modern systems with very important significance.