This Year, The Issuance Of Local Government Bonds Starts 18 Days.

The first batch of bonds was packaged and issued 43 billion 800 million yuan, of which three yuan was 28 billion 600 million yuan, and five yuan was 15 billion 200 million yuan.

The issuance of local government bonds in 2010 will officially start in June 18th. The Ministry of finance will first invite nine local governments (including planned cities) to tender for 43 billion 800 million yuan, including three yuan for 28 billion 600 million years and 15 billion 200 million yuan for five years.

Besides the HA gate, the first batch of local debt issuance is in the central and western provinces. The largest debt issue was Hunan Province, 8 billion 900 million yuan, followed by Xinjiang issued 6 billion yuan, Xiamen issued the smallest scale, 600 million yuan.

The head of the relevant department of the Ministry of Finance told Caixin reporters that the 43 billion 800 million yuan local debt issued for the first time will be packaged to determine the bid interest rate, which will not reflect the credit and risk differences everywhere.

Wang Changjun, a fixed income analyst at Anxin securities, believes that the local government debt is basically equivalent to the national debt, and the tender interest rate will only add a bit of risk premium.

As in last year, 200 billion yuan will be issued by the Ministry of finance to the local government to issue bonds in 2010, which will be included in the provincial budget management. This year's local debt issuance is nearly three months behind last year. The first phase of local debt in 2009 was issued in public on March 27th.

Earlier, an official from the Ministry of finance of the Ministry of Construction said that the issuance of local debt has been waiting for the right time, because the government has not accelerated investment in the first quarter because of its high economic growth rate.

In fact, before April, 200 billion yuan of local debt has been allocated to all provinces. At the end of May, a number of provincial and municipal people's Congress of Sichuan, Beijing, Shandong, Fujian and other provinces held a standing committee meeting. According to the approved scale of the Ministry of finance, the draft plan for budgetary adjustment of local government bonds in 2010 was adopted.

The Ministry of Finance requests that this year's local government bond fund arrangement be mainly used to complete the projects under construction and strictly control the new projects. It must be mainly used to protect the local supporting facilities of the central investment public welfare projects, and give priority to the protection of the two matching (third, fourth batch) of the central investment public welfare projects in the 2009. It is also necessary to give priority to other public welfare projects that are difficult to attract social investment and strictly control the investment projects that can be raised through market conduct.

In addition to the provincial projects, part of the provincial debt raising funds are transferred to state and county (cities). The Shandong Provincial People's Congress stressed that to strengthen the management of loan funds and to transfer bond funds to cities and counties, the provincial government will strengthen supervision through "quota control + project management".

For the repayment responsibility, the Shandong provincial finance department will, in accordance with the principle of "who borrows and pay back", sign a debt repayment obligation with the departments of Finance and departments in cities and counties and provincial units that have the ability to repay the debts, so as to ensure that the bond funds repay the principal and interest on time.