Notice of the General Office of the People’s Government of Yunnan Province on Printing and Distributing the Emergency Response Plan for Government Debt Risks in Yunnan Province

State and municipal people’s governments, provincial committees, offices, departments and bureaus:

"Yunnan provincial government debt risk emergency response plan" has been agreed by the provincial people’s government and is hereby issued to you, please earnestly organize the implementation.

General Office of Yunnan Provincial People’s Government

March 30, 2017

(This piece is publicly released)

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Emergency response plan for government debt risk in Yunnan Province

1 General rules

1.1 Purpose of compilation

Establish and improve the emergency handling mechanism of government debt risks in the province, adhere to rapid response, classified policies, perform their duties, coordinate and coordinate, and handle them safely, firmly hold the bottom line that regional systemic risks do not occur, effectively prevent and resolve financial risks, maintain economic security and social stability, and promote sustained and healthy economic and social development in the province.

1.2 working principles

1.2.1 graded responsibility

The provincial people’s government is responsible for the unified leadership of the province’s government debt risk emergency response, and is directly responsible for the emergency response of government debt risk at the provincial level. Under the unified leadership of the provincial people’s government, the relevant departments at the provincial level will strengthen the guidance on the emergency disposal of government debt risks.

The people’s governments of prefectures and cities are directly responsible for the emergency disposal of local government debt risks, and the people’s governments of counties, cities and districts are responsible for each other according to the principle of territoriality.

Cross-state, municipal government debt risk emergency disposal should be under the unified leadership of the provincial people’s government, and handled by the relevant state and municipal people’s governments through consultation; Cross-county, city and district government debt risk emergency disposal shall be handled by the relevant state and municipal people’s governments through consultation.

1.2.2 Timely response

The people’s governments of prefectures, cities, counties and districts shall adhere to the principle of putting prevention first, combining prevention with emergency response, strengthen the monitoring of government debt risks, timely investigate potential risks and properly handle risk events.

1.2.3 Dispose of according to law

The emergency handling of government debt risk events should comply with laws and regulations, respect the principle of marketization, and fully consider and safeguard the legitimate rights and interests of all parties.

1.2.4 Follow the principle of confidentiality.

When dealing with government debt risk emergencies, we should keep state secrets, and strictly abide by confidentiality laws and regulations for matters involving secrets or above, and shall not divulge secrets.

1.3 compilation basis

Budget Law of the People’s Republic of China, Emergency Response Law of People’s Republic of China (PRC), Opinions of the State Council on Strengthening the Management of Local Government Debt (Guo Fa [2014] No.43), Notice of the General Office of the State Council on Printing and Distributing the Management Measures for Emergency Plans (Guo Ban Fa [2013] No.101), Notice of the General Office of the State Council on Printing and Distributing the Emergency Response Plan for Local Government Debt Risks (Guo Ban Han [2016] No.88), Implementation Opinions of the Ministry of Finance on Implementing Limit Management for Local Government Debt (Cai Yu [2015] No.225) and Notice of the People’s Government of Yunnan Province on Printing and Distributing Three Implementation Plans for Deepening the Reform of Government Debt Management System in Yunnan Province (Yun Zhengfa [2014] No.73)

1.4 Scope of application

The government debt risk event mentioned in this plan refers to the event that the government at or above the county level has or may not be able to pay the principal and interest of the government debt on schedule, or is unable to fulfill the statutory compensation responsibility for contingent debts, which is easy to cause financial and financial risks and needs to take emergency measures to deal with it. The stock debt mentioned in this plan refers to the local government debt identified by the end of 2014, including stock government debt and stock contingent debt.

This plan is applicable to the provincial level, state-level and county-level governments, as well as state organs, party and government organizations, social organizations, institutions, financing platform companies and other organizations (hereinafter referred to as provincial debt departments). The list of provincial debt departments and the amount of debt are subject to the list and amount locked in the local government debt management system.

Government debt risk management targets include provincial debt departments, state-level and county-level governments. Economic Development Zone Administrative Committee and other government agencies at or above the county level shall be incorporated into the management of the government at the corresponding level in accordance with administrative subordination.

1.4.1 Government Debt Risk Events

(1) Government bond risk event: refers to the default of the general bonds and special bonds (including government bonds issued by the Ministry of Finance) issued by the provincial people’s government.

(2) Other government debt risk events: refers to the default in servicing the principal and interest of other government debts except government bonds.

1.4.2 Contingent debt risk events

(1) Debt risk event provided by the government: refers to the risk of the stock contingent debt borrowed by enterprises and institutions and guaranteed by the government at or above the county level and relevant departments, and the government needs to perform the guarantee responsibility or the corresponding civil liability according to law but is unable to bear it.

(2) Debt risk events in which the government assumes the responsibility of rescue: refers to the stock of contingent debts that enterprises and institutions borrow for public welfare projects and are repaid by non-financial funds, and the government at or above the county level is not legally responsible for debt repayment or guarantee, but the government needs to assume certain rescue responsibilities to maintain economic security or social stability but is unable to rescue them.

2 Organization and command system and responsibilities

2.1 Emergency Organization Governments at or above the county level set up government debt management leading groups (hereinafter referred to as debt management leading groups), which are non-permanent institutions and are responsible for leading the daily management of local government debt. When a local government debt risk event occurs, it will be transferred to the government debt risk event emergency leading group (hereinafter referred to as the debt emergency leading group) as needed, and be responsible for organizing, coordinating and directing the response to the risk event. The debt management leading group (debt emergency leading group) is headed by the principal responsible person of the government at the same level, and its member units include departments and units such as finance, development and reform, organization, supervision, human resources and social security, auditing, state-owned assets, local financial supervision, government supervision, publicity, branches of the People’s Bank of China and local banking supervision departments, and the member units can be adjusted in a timely manner according to the needs of work.

2.1.1 Provincial level

The provincial people’s government set up a leading group for government debt management, with an office in the Provincial Department of Finance, responsible for unified leadership, command and coordination of the province’s government debt risk emergencies. Organize and coordinate all member units and relevant departments to jointly carry out emergency disposal work, decide on major disposal measures and major issues reported in news, and be responsible for making decisions on other important issues in disposal work.

2.1.2 State, city and county level

State, city, county, District People’s governments set up corresponding government debt management leading groups, with offices in the financial departments at the corresponding levels, responsible for formulating local debt risk emergency plans and reporting them to the Provincial Department of Finance for the record, unified leadership, command and coordination of local debt risk emergency disposal, and completing other tasks assigned by the superior debt management leading group.

2.2 Department responsibilities

2.2.1 The financial department is the centralized management department of government debt, which undertakes the office functions of the debt management leading group (debt emergency leading group) at the corresponding level, is responsible for the daily monitoring and regular reporting of debt risk, and organizes the proposal of emergency measures for debt risk.

2.2.2 The industry department in charge of the debt unit is the main body responsible for the emergency disposal of government debt risk, and is responsible for regularly sorting out the government debt risk situation of the industry, and urging the relevant units that borrow debt or use debt funds to formulate the emergency plan for the debt risk of the unit; When there is a debt risk event, implement the debt repayment fund arrangement and report to the debt emergency leading group in time.

2.2.3 The development and reform department is responsible for evaluating local investment plans and projects, adjusting investment plans according to emergency needs, and taking the lead in emergency handling of corporate bond risks.

2.2.4 The audit department is responsible for auditing the government debt risk events and clarifying the responsibilities of relevant units and personnel.

2.2.5 The local financial supervision department is responsible for coordinating the local financial institutions under supervision to cooperate with the government debt risk disposal according to the division of functions.

2.2.6 Branches of the People’s Bank of China are responsible for monitoring and evaluating financial risks, taking the lead in preventing and resolving regional systemic financial risks and maintaining financial stability.

2.2.7 The local banking supervision department is responsible for guiding banking financial institutions to do a good job in risk prevention and control, coordinating banking financial institutions to cooperate with risk disposal, and taking the lead in doing a good job in risk disposal such as bank loans, trusts and illegal fund-raising.

2.2.8 The propaganda department is responsible for tracking and judging public opinion and guiding public opinion correctly after the occurrence of risk events.

2.2.9 Other departments and units shall be responsible for the management and prevention of debt risks of their own departments and units, and implement the responsibility of repaying government debts.

3 Early warning and prevention mechanism

3.1 Early warning and monitoring

The Provincial Department of Finance establishes a risk assessment and early warning mechanism for government debt. According to the results of local government debt risk assessment and early warning issued by the Ministry of Finance, risk early warning and tips will be implemented in high-risk areas, and relevant departments will be notified and reported to the provincial people’s government. The Provincial Department of Finance shall, according to the financial operation and debt management of the government at or above the county level, assess the risk of government debt, regularly report the results to the financial departments of the state, city, county and district, and send a copy to the government at the same level. Governments at or above the county level shall regularly investigate potential risks and nip them in the bud.

3.2 Analysis and investigation

The financial departments of each state, city, county and district should further improve and strengthen the ways and means of government debt supervision, and regularly assess the local and departmental debt risk according to the local general debt, special debt and contingent debt. In areas with high debt risk, it is necessary to carefully analyze the risk situation of departments and industries, investigate the debt risk points that regional domestic demand focuses on, increase debt repayment efforts, and gradually reduce risks. In areas with relatively low debt risk, the scale and growth rate of debt balance should be reasonably controlled.

3.3 Information report

Governments at or above the county level and debt fund users shall establish a reporting system for government debt risk events, report problems to the debt management leading group at the same level and the debt management leading group at a higher level in a timely manner, and shall not conceal, delay, omit or make false reports.

3.3.1 Government Debt Risk Event Report

City and county governments are expected to be unable to pay the due principal and interest of government debt in full on schedule after taking measures such as coordinating financial resources at the same level and disposing of government assets, and shall report to the higher government more than 2 months in advance, and send a copy to the higher financial department. In case of emergency or major situation, the county government can report directly to the provincial people’s government and send a copy to the Provincial Department of Finance. After receiving the report, the Provincial Department of Finance shall immediately inform the member units of the debt emergency leading group and send a copy to the Office of the Financial Ombudsman of the Ministry of Finance in Yunnan Province.

3.3.2 Contingent Debt Risk Event Report

If the government at or above the county level or the debtor with debt is expected to be unable to pay the contingent principal and interest in full on schedule, it shall report to the competent department at the same level and the financial department more than one month in advance, and after the financial department in conjunction with the competent department confirms that it is unable to perform the statutory compensation responsibility or the necessary rescue responsibility, the government at the same level shall report to the higher level government while taking relevant measures, and send a copy to the higher level financial department. In case of sudden or major events, the county government can report directly to the provincial people’s government and send a copy to the Provincial Department of Finance. After receiving the report, the Provincial Department of Finance shall immediately inform the member units of the debt emergency leading group and send a copy to the Office of the Financial Ombudsman of the Ministry of Finance in Yunnan Province.

3.3.3 Report content

Including basic information such as the types of government debts expected to default, debtors, creditors, term, principal and interest, original repayment arrangements, causes of risks, development trends, possible losses, adopted and planned countermeasures, etc.

3.3.4 Generally, the reporting method takes the form of written report. In case of emergency, you can report by telephone first and then by written report.

3.4 classified disposal

3.4.1 Government bonds

For government bonds, governments at or above the county level shall bear all repayment responsibilities according to law.

3.4.2 Stock government debt in the form of non-government bonds

The stock of government debt in the form of non-government bonds can be classified in accordance with the relevant provisions of Article 84 of the People’s Republic of China (PRC) Contract Law, etc., after the governments at or above the county level, creditors, enterprises and institutions and other debtors reach an agreement through consultation:

(1) If the creditor agrees to replace it with government bonds within the prescribed time limit, the government at or above the county level shall not refuse the transfer of repayment obligations, and shall bear all repayment responsibilities. Governments at or above the county level shall actively raise funds by means of budget arrangement and asset disposal, and repay the principal and interest of due government debts.

(2) If the creditor does not agree to replace it with government bonds within the prescribed time limit, the original debtor shall still be liable for debt repayment according to law, and the corresponding government debt limit shall be uniformly recovered by the provincial people’s government. As the investor, the government at or above the county level shall bear limited liability within the scope of capital contribution.

3.4.3 Stock contingent liabilities

(1) Stock secured debt. Stock secured debt does not belong to government debt. According to the Guarantee Law of People’s Republic of China (PRC) and its judicial interpretation, except for loans from foreign governments and international economic organizations, the guarantee contract issued by governments and their departments at or above the county level is invalid, and the governments and their departments at or above the county level are not liable for debt repayment, but only bear appropriate civil liability according to law, but at most it should not exceed 1/2 of the part that the debtor cannot pay off; If the amount of guarantee is less than 1/2 of the part that the debtor cannot pay off, it shall be limited to the amount of guarantee.

The specific amount shall be determined by the government at or above the county level, creditors and debtors through consultation with reference to the amount of guarantee promised by the government and financial affordability.

(2) Stock rescue debt. Stock rescue debt does not belong to government debt. The government at or above the county level may rescue the existing contingent debts that the government may assume certain rescue responsibility, but it reserves the right of recourse against the debtor.

3.4.4 New illegal secured debts

After the implementation of the Budget Law of the People’s Republic of China revised in 2014, the debts provided by governments at all levels in violation of laws and regulations shall be dealt with according to the law with reference to Item (1) of 3.4.3.

3.4.5 Other matters

The "Guidelines for the Classification and Disposal of Local Government Debt Risks" issued by the Ministry of Finance, as a supporting document of this plan, shall be forwarded separately by the Provincial Department of Finance.

3.5 Debt Risk Event Level

According to the nature, scope of influence and degree of harm of government debt risk events, it is divided into four grades: I (extra large), II (major), III (large) and IV (general). When the level indicators of government debt risk events overlap and it is difficult to determine the level, they shall be disposed of according to a higher level to prevent the risk from spreading; When the level of government debt risk events increases with time, it shall be handled according to the upgraded level.

The monitoring subjects of government debt risk events are the people’s governments of provinces, prefectures, cities, counties and districts. The government debt risk events of government agencies at or above the county level, such as the Economic Development Zone Administrative Committee, shall be monitored by their respective governments according to their administrative affiliation.

3.5.1 Class I (extra-large) debt risk event refers to one of the following circumstances:

(1) the government bonds issued by the provincial people’s government have defaulted on the payment of principal and interest due;

(2) The people’s governments at the provincial level or above 15% of the province’s prefectures, cities, counties and districts are unable to repay the principal and interest of the government debt, or the necessary expenses for ensuring wages, operations and people’s livelihood cannot be guaranteed due to the repayment of the principal and interest of the government debt (hereinafter referred to as the "three guarantees" expenses, which are determined with reference to the scope and standards of the Ministry of Finance);

(3) The people’s governments at the provincial level or more than 15% of the province’s prefectures, cities, counties and districts are unable to fulfill the statutory compensation responsibility or necessary rescue responsibility for contingent debts, or the "three guarantees" expenditure cannot be guaranteed due to the performance of the above responsibilities;

(4) The default amount of the provincial government debt principal accounts for more than 10% of the payable principal of local government debt in the same period, or the default amount of interest accounts for more than 10% of the payable interest in the same period;

(5) Other circumstances that the provincial people’s government needs to identify as Class I debt risk events.

3.5.2 Class II (major) debt risk event refers to one of the following circumstances:

(1) The provincial people’s government has failed to issue government bonds for more than three consecutive times;

(2) More than 10% (less than 15%) of the state, city, county and district people’s governments in the province are unable to pay the principal and interest of government debt, or the "three guarantees" expenditure cannot be guaranteed due to the payment of the principal and interest of government debt;

(3) More than 10% (less than 15%) of the people’s governments at the state, city, county and district levels in the province are unable to fulfill the statutory compensation responsibility or necessary relief responsibility for contingent debts, or the "three guarantees" expenditure cannot be guaranteed due to the performance of the above responsibilities;

(4) The default amount of principal of government debt at or above the county level accounts for more than 5% (less than 10%) of the payable principal of local government debt in the same period, or the default amount of interest accounts for more than 5% (less than 10%) of the payable interest in the same period;

(5) Due to the default of due government debts, or due to the government’s inability to fulfill the statutory compensation responsibility or necessary rescue responsibility for contingent debts, major mass incidents have been caused, and the impact is extremely bad;

(6) Other circumstances that the government at or above the county level needs to identify as Class II debt risk events.

3.5.3 Grade III (large) debt risk event refers to one of the following circumstances:

(1) More than two people’s governments in the province, but less than 10% of them are unable to pay the principal and interest of government debt, or the "three guarantees" expenditure cannot be guaranteed due to the payment of the principal and interest of government debt;

(2) More than 2 prefectures, cities, counties and districts in the province, but not reaching 10%, are unable to fulfill the statutory compensation responsibility or necessary relief responsibility for contingent debts, or the "three guarantees" expenditure cannot be guaranteed due to the performance of the above responsibilities;

(3) The default amount of the principal of the government debt at or above the county level accounts for more than 1% (less than 5%) of the payable principal of the local government debt in the same period, or the default amount of interest accounts for more than 1% (less than 5%) of the payable interest in the same period;

(4) Due to the default of due government debts, or due to the government’s inability to fulfill the statutory compensation responsibility or necessary rescue responsibility of contingent debts, a large group event is caused;

(5) Other circumstances that the government at or above the county level needs to identify as Class III debt risk events.

3.5.4 Grade IV (general) debt risk event refers to one of the following circumstances:

(1) a single state, city, county, district people’s government at the same level to repay the principal and interest of government debt substantive breach of contract, or due to the payment of government debt principal and interest can not guarantee the "three guarantees" expenditure;

(2) A single state, city, county, and district people’s government is unable to fulfill the statutory compensation responsibility or necessary relief responsibility for contingent debts at the same level, or the "three guarantees" expenditure cannot be guaranteed due to the performance of the above responsibilities;

(3) Group incidents are caused by the default of due government debts, or by the government’s inability to fulfill the statutory compensation responsibility or necessary rescue responsibility for contingent debts;

(4) Other circumstances that the government at or above the county level needs to identify as level IV debt risk events.

4 emergency response

4.1 graded response and emergency response

The people’s governments of states, cities, counties and districts are responsible for repaying the debts borrowed by them. It is necessary to strengthen daily risk management and properly handle the repayment of government debts in accordance with the Guidelines for the Classification and Disposal of Local Government Debt Risks issued by the Ministry of Finance. At the same time, it is necessary to strengthen the liquidity management of financial funds to avoid government debt default caused by poor liquidity management. Due to the inability to repay the principal and interest of the government debt or the inability to bear the legal compensation responsibility, the risk events will be triggered, and the corresponding graded response and emergency response will be implemented in a timely manner according to the debt risk level.

4.1.1 Emergency Response to Grade IV Debt Risk Events

(1) The relevant state, city, county and district debt management leading group should be transformed into a debt emergency leading group to judge the risk events, find out the reasons, clarify the responsibilities, and resolve the debt risks on its own.

(1) In case of default of general debt with general public budget revenue as the source of debt repayment, under the premise of ensuring the "three guarantees" expenditure, we can reduce investment plans, co-ordinate all kinds of balance carry-over funds, transfer government funds or state-owned capital operating budget revenue, use budget stabilization funds or reserve funds to raise funds for repayment, and dispose of government assets when necessary. Contingent debts that provide guarantees to the government or bear the responsibility of necessary assistance, and the government is unable to bear the corresponding responsibilities, shall also be handled in accordance with the above principles.

(2) If the special debt with government fund income as the source of repayment defaults due to insufficient government fund income, on the premise of ensuring the basic operation and performance of the department, it shall raise funds to repay the debt by transferring the project operating income, reducing the investment plan of the industry department in charge of the debt unit, disposing of the realizable assets of the department and the debt unit, adjusting the expenditure structure of the department budget, and deducting the department funds. When the government is unable to bear the corresponding responsibility for the contingent debt formed by the guarantee provided by the department, it shall also be handled in accordance with the above principles.

(3) If the creditor does not agree to change the relationship between creditor’s rights and debts or does not agree to replace it, resulting in that the existing government debt cannot be converted into government bonds according to law within the prescribed time limit, the original relationship between creditor’s rights and debts will remain unchanged, and the debtor will repay it with its own funds by arranging its own funds and disposing of assets. If the debt unit is unable to repay by self-financing, it can negotiate with creditors for debt restructuring or bankruptcy according to law in accordance with the principle of marketization, and the government will bear limited liability within the scope of capital contribution. Contingent debts of the government are also handled in accordance with the above principles.

The state, city, county, District People’s government debt risk events, before the recovery of normal solvency, in addition to the key projects identified by the State Council, in principle, no new government investment projects. If the government investment projects under construction can be postponed, the construction can be suspended to free up funds for debt repayment according to law.

(2) When the state, city, county and district debt management leading group or debt emergency leading group thinks it is really necessary, it can start the financial restructuring plan. State, city, county, District People’s government annual general debt service expenditure exceeds 10% of the general public budget expenditure in that year, or special debt service expenditure exceeds 10% of the government fund budget expenditure in that year, the local debt management leading group or debt emergency leading group must start the financial restructuring plan.

(3) The state, city, county and district people’s governments shall report the progress and disposal results of debt risk emergency disposal to the provincial people’s government step by step, and send a copy to the Provincial Department of Finance.

4.1.2 Emergency Response to Level III Debt Risk Events

In addition to taking measures to deal with the level IV debt risk events, the following escalation measures should also be taken:

(1) The relevant state, city, county and district debt management leading group shall be transformed into a debt emergency leading group, and the debt risk situation and emergency response plan shall be reported to the superior debt management leading group.

(2) The superior debt management leading group should pay close attention to the changes of the situation, strengthen policy guidance, organize a special meeting to report the risk disposal in time, and set up a working group to enter the risk area when necessary to guide and support the debt risk disposal.

(3) If the state, city, county, and district people’s governments have difficulty in repaying the government bonds (including general bonds and special bonds) due on behalf of the provincial people’s government, they may apply for prepayment by the higher-level finance, and afterwards, they will be deducted according to the daily interest rate of 2 times of the current bond coupon rate.

(4) The state, city, county and district people’s governments shall report the progress and disposal results of debt risk emergency disposal to the provincial people’s government step by step, and send a copy to the Provincial Department of Finance.

4.1.3 Emergency Response to Level II Debt Risk Events

In addition to taking measures to deal with Grade IV and III debt risk events, the following escalation measures should also be taken:

(1) the provincial debt management leading group should be turned into a debt emergency leading group, summarize the relevant information and report to the provincial people’s government, dynamically monitor the progress of risk events, and guide and support the state, city, county and district people’s governments to resolve debt risks.

(2) If the state, city, county and district people’s governments co-ordinate their financial resources at the same level and dispose of government assets according to law still cannot solve the debt repayment gap due and affect the normal operation of the government or economic and social stability, they can apply to the provincial debt emergency leading group for temporary assistance. The application mainly includes a description of the debt risk, the emergency plan of the government at the same level and the emergency measures taken, and matters that need the help of the higher government.

(3) The provincial debt emergency leading group puts forward audit opinions on the application for assistance from the state, city, county and district people’s governments, and implements it after being approved by the provincial people’s government, and immediately starts the accountability procedure.

(4) The provincial people’s government appropriately deducts the scale of new government bonds of states and cities involved in Grade II debt risk events.

(5) The provincial debt emergency leading group urges the people’s governments of states, cities, counties and districts to implement emergency measures for debt risk and track the debt risk resolution. When necessary, the provincial people’s government may set up a working group to station in risk areas, help or take over financial management in risk areas, and help formulate or organize the implementation of financial restructuring plans in risk areas.

4.1.4 Emergency Response to Level I Debt Risk Events

In addition to taking measures to deal with debt risk events of Grade IV, III and II, the following escalation measures should also be taken:

(1) the provincial debt emergency leading group shall report the debt risk and emergency response plan to the Ministry of Finance in a timely manner.

(2) The people’s governments of states, cities, counties and districts shall establish a mechanism for regularly reporting the debt risk disposal information to the provincial debt emergency leading group, and major issues must be reported immediately.

(3) The provincial debt emergency leading group shall report to the provincial people’s government the list of state, city, county and district people’s governments involved in Class I debt risk events, and start the debt risk accountability mechanism.

(4) The provincial people’s government suspended the level I debt risk event involving the qualification of the state, city, county and district people’s governments to add government bonds.

4.2 Government Financial Restructuring Plan

To implement the government’s financial restructuring plan, we must perform relevant procedures according to law to ensure the "three guarantees" expenditure, pay attention to coordination with financial policies, strengthen communication with financial institutions, and not affect the provision of basic government public services because of repayment of debt principal and interest. The financial restructuring plan includes but is not limited to the following contents:

(1) broaden the channels of financial resources. Strengthen tax collection and management in accordance with the law, increase the efforts to pay taxes and arrears, and ensure that all receivables are collected. Implement the system of paid use of state-owned resources and increase the government’s resource income. In addition to laws, administrative regulations and preferential fiscal and taxation policies stipulated by the State Council, other preferential fiscal and taxation policies can be suspended and resumed after the risk is relieved.

(2) Optimize the expenditure structure. During the financial restructuring period, in addition to the necessary "three guarantees" expenditures, depending on the level of debt risk events, other financial expenditures of the government at the same level should maintain "zero growth" or be greatly reduced. The first is to reduce capital construction expenditure. No new government investment plans or new government investment projects are allowed; It is not allowed to set up all kinds of investment funds that need government investment, etc., and the annual exit plan should be formulated and strictly implemented if it has been established. The second is to reduce government public funds. We will implement "zero expenditure" for projects such as going abroad for official business, training and official reception, and vigorously reduce various expenditures such as government consultation, travel and labor services. The third is to control personnel welfare expenses. Institutions and institutions shall suspend the addition of new personnel, and take measures such as reducing institutional establishment and personnel when necessary; Suspension of state, city, county, district people’s government to introduce various subsidy policies for institutions, reduce or even cancel the expenditure of supernumerary employees. The fourth is to clean up all kinds of subsidies for enterprises and institutions. Suspend or cancel all kinds of awards, policy subsidies and interest subsidies to enterprises, non-basic livelihood subsidies introduced by the people’s governments of the state, city, county and district. Fifth, adjust the excessive expenditure standards, give priority to the major expenditure policies such as education, social security, medical care and health issued by the state, and the local expenditure policy standards shall not exceed the national unified standards. The sixth is to suspend the policy accrual of land transfer income. After deducting the cost expenditure, the land transfer income should be used to repay the debt.

(3) Disposal of government assets. Designated institutions shall uniformly take over all kinds of operating assets, assets of administrative institutions and state-owned shares owned by the government and its departments, realize them in light of market conditions, and raise funds to repay debts through multiple channels.

(4) Apply for temporary assistance. After taking the above measures, if the financial revenue and expenditure in the risk areas are still difficult to balance, you can apply for temporary assistance to the government at the next higher level in accordance with the relevant procedures stipulated in the Measures for Temporary Financial Assistance in Yunnan Province, including but not limited to: compensating part of the government debt, increasing the financial transfer payment, and reducing some special transfer payment matching funds. After the implementation of the financial restructuring plan, the risk areas will be returned in full and on time within the prescribed repayment time limit.

(5) Strengthen budget review. After the implementation of the financial restructuring plan, the relevant state, city, county and district people’s governments shall report to the people’s congress at the corresponding level or its standing committee for examination and approval and must report to the higher level government for the record. The higher-level government should strengthen the examination and evaluation of the budget adjustment plan submitted by the lower-level government for the record, and if it thinks that there is something inappropriate that needs to cancel the resolution of approving the budget, it should submit it to the Standing Committee of the people’s congress at the corresponding level for deliberation and decision in accordance with the law.

(6) Improve financial management. The relevant state, city, county and district people’s governments shall implement medium-term fiscal planning and management, properly arrange fiscal revenue and expenditure budgets, and strictly link up with policies and measures to resolve government debt risks.

4.3 Public opinion guidance

According to the needs of dealing with debt risk events, the state, city, county and district people’s governments or their debt risk emergency leading groups that start emergency response should track and judge public opinions in time, improve the press release system, designate special press spokespersons, uniformly release information to the outside world, and correctly guide public opinion. Among them, if the level IV emergency response is started, the government at the same level or its debt risk emergency leading group will release information uniformly. If Grade III emergency response is initiated, the local state and municipal people’s government or its debt risk emergency leading group will release information uniformly. If Class II and Class I emergency response is started, the provincial people’s government or the provincial debt risk emergency leading group will release information uniformly.

4.4 Emergency termination

The government debt risk has been alleviated and controlled, and the government at or above the county level has achieved the goal of financial restructuring, and the emergency measures have been terminated with the consent of the debt management leading group or the debt emergency leading group of the higher government.

5 post-disposal

5.1 Record and summary of emergency handling of debt risk events

In the process of emergency handling of debt risk events, the relevant state, city, county and district people’s governments shall make detailed, specific and accurate work records, timely summarize and properly keep relevant documents and materials. After the emergency disposal, it is necessary to form a written summary in time and report to the Standing Committee of the people’s congress at the corresponding level and the higher level government.

5.2 Evaluation and analysis

After the emergency disposal of debt risk events, the relevant state, city, county and district people’s governments and their financial departments should evaluate the emergency disposal of debt risk events. The evaluation contents mainly include: the causes of debt risk events, the emergency response process, emergency measures, the effect of emergency response, and the continuous impact on future debt management. The relevant state, city, county and district people’s governments shall, according to the evaluation results, sum up experiences and lessons in a timely manner, and improve and perfect the emergency response plan.

6 safeguard measures

6.1 Communication Guarantee

The government that initiated the emergency response should keep the emergency command and communication unblocked, and the relevant departments should designate liaison officers to provide various contact information such as the address of the unit, office phone, mobile phone, fax and e-mail.

6.2 human security

Governments at or above the county level should strengthen the construction of government debt management team and improve the professional capabilities of relevant personnel in policy theory, daily management, risk monitoring, emergency response and public opinion response. The relevant government that initiated the emergency response shall deploy relevant departments to arrange personnel to implement the work. The financial departments at or above the county level shall set up full-time institutions and personnel to manage government debts.

6.3 Resource guarantee

The government at or above the county level where the government debt risk event occurs should co-ordinate the financial funds at the same level, the assets of the government and its departments, the government’s creditor’s rights and other debt-paying resources to provide the necessary guarantee for debt repayment.

6.4 security

In the process of emergency response, events that may affect public safety and social stability should be prevented in advance, controlled in time and properly handled; Abide by the confidentiality provisions, strengthen the management of confidential information, and strictly control the scope of knowledge.

6.5 Technical Reserve and Guarantee

The debt emergency leading group may, according to the needs, establish a consultation mechanism, deploy relevant professionals to form an emergency expert group for debt risk events, participate in emergency disposal work, and provide technical and legal support.

6.6 accountability

6.6.1 Scope of responsibility for violation of laws and regulations

(1) Violation of the Budget Law of the People’s Republic of China, the Banking Supervision Law of the People’s Republic of China and other laws and regulations:

The balance of government debt exceeds the approved local government debt limit; The government and its departments borrow government debts by means other than issuing government bonds, including but not limited to borrowing government debts through enterprises and institutions;

There is no clear repayment plan and stable source of repayment funds for borrowing government debts;

The government or its departments provide guarantees for the debts of units and individuals in violation of the law;

Banking financial institutions violate laws, administrative regulations and relevant state regulations on banking supervision and management; Government debt funds are not used for public welfare capital expenditure according to law;

The increase in borrowing government debt is not included in the budget adjustment plan and reported to the Standing Committee of the people’s Congress at the corresponding level for approval;

Failing to explain the situation and matters of borrowing government debts in accordance with the provisions, and failing to disclose them to the public within the statutory time limit; Other acts in violation of the law.

(2) The following acts in violation of the State Council’s Opinions on Strengthening Local Government Debt Management (Guo Fa [2014] No.43) and other relevant policies:

The government and its departments illegally borrow debts outside the budget;

Financial institutions provide financing to the government in violation of laws and regulations, and require the government to provide guarantees in violation of laws and regulations;

The government and its departments misappropriate debt funds or change the use of debt funds in violation of regulations;

The government and its departments maliciously evade debts;

After the occurrence of debt risk, conceal, delay reporting or instruct others to conceal or lie about the situation;

Other acts in violation of the regulations of the Ministry of Finance and other departments.

6.6.2 Response of investigation mechanism

After the occurrence of government debt risk events above Grade IV, the accountability mechanism for debt risk should be started in a timely manner, and the government at or above the county level should conduct administrative accountability on the relevant responsible personnel according to law; The banking supervision department shall hold the relevant responsible personnel of banking financial institutions accountable according to law.

6.6.3 accountability procedures

(1) The Provincial Debt Management Leading Group organizes relevant departments to carry out special investigations or special audits on the state, city, county, and district people’s governments where government debt risks occur, verify and identify the liability for debt risks, put forward handling opinions, form an investigation or audit report, and submit it to the provincial people’s government for examination and approval.

(2) The relevant appointment and removal organs, supervisory organs and banking supervision departments shall investigate the responsibilities of relevant responsible units and personnel according to discipline and law; Those suspected of committing crimes shall be handed over to judicial organs for handling.

(3) The provincial people’s government will put the disposal of government debt risk into the scope of performance appraisal. The people’s governments of states, cities, counties and districts that implement financial restructuring shall hold the relevant personnel accountable according to the reasons and time of the debt risk events. The relevant appointment and removal organs should refer to the risk and disposal of government debts in the region when reusing or promoting the main leading comrades of the government; If it is a risk event caused by borrowing debts during the term of the current government, the main leading comrades of the government shall not reuse or promote it before terminating the emergency measures; If it belongs to the responsibility of the outgoing government leaders, the supervisory organ shall investigate its responsibility according to discipline and law.

7 supplementary provisions

7.1 Plan management

This plan is formulated by the Provincial Department of Finance and implemented after being approved by the provincial people’s government. After the implementation of this plan, the Provincial Department of Finance shall, jointly with relevant departments, organize publicity and training, strengthen business guidance, and make timely evaluation and revision according to the implementation. Governments at or above the county level should formulate emergency response plans for local debt risks in light of actual conditions. The relevant units that borrow debts or use debt funds shall formulate their own debt risk emergency plans and submit them to the competent departments of the industry for the record.

7.2 Plan Interpretation

This plan shall be interpreted by the Provincial Department of Finance.

7.3 implementation time of the plan

The plan shall be implemented as of the date of issuance.