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Major news, starting from this year, it is planned to issue ultra-long-term special treasury bonds for several consecutive years, which will be specially used for the implementation of major national strategies and security capacity building in key areas, and 1 trillion yuan will be issued this year.
What is the meaning of ultra-long-term special government bonds? Chun Gongzi will explain it to you in popular words here!
Ultra-long-term special treasury bonds refer to treasury bonds with a maturity of more than 10 years, which are usually used to solve the financial problems of the implementation of major national strategies and security capacity building in key areas.
The main characteristics of ultra-long-term special treasury bonds include:
1. Ultra-long-term: This means that the maturity of these treasury bonds is much longer than that of general treasury bond products, usually 10 years or more. This long-term debt instrument helps to better plan and manage long-term fiscal needs.
2. Special: Ultra-long-term special treasury bonds usually have a specific purpose, and they may be used to finance some specific large-scale projects or meet the long-term financial needs of the country.
3. Treasury bonds: Treasury bonds are bonds issued by *** and are a way for the state to raise funds. Treasuries are often considered low-risk investments because they are backed by **.
This is the fifth time in history that ultra-long-term special treasury bonds have been issued, which has been used to pay bad debts of the four major banks in 98, China Investment Corporation has been established in 07, and it has been fighting the epidemic for 20 years, and it has been used for local transfer payments last year.
Annual issuance of special treasury bonds: This issuance is mainly in response to the impact of the Asian financial crisis on China's economy. In order to support the reform of state-owned commercial banks and defuse financial risks, the state has issued 270 billion yuan of special treasury bonds to supplement the capital of wholly state-owned commercial banks.
Annual issuance of special treasury bonds: The main purpose of this issuance is to form the China Investment Corporation (CIC). CIC's main mission is to hold and manage the country's foreign exchange funds in order to diversify and maintain and increase the value of foreign exchange assets.
In response to the economic challenges and risks brought about by the pandemic, China has once again issued special treasury bonds, which are used to increase local transfer payments and support emergency public health services such as epidemic prevention and control.
In accordance with the authorization of the Standing Committee of the National People's Congress, the Ministry of Finance re-issued special treasury bonds, and the funds were mainly used for local transfer payments.
The above information reflects the important role of special treasury bonds in stabilizing the economic and financial system and supporting the implementation of major national strategies in different historical periods of China. Each special government bond was issued in a specific context and in order to solve some of the pressing problems facing the country at that time.
Improving economic development is the primary goal, and repairing local debts or enhancing local active investment capabilities is indeed one of the important means to revitalize the economy. When local governments face debt problems, they may limit their ability to invest and spend, which can affect the development of the local economy. Therefore, it is crucial to repair local debts and enhance the financial strength of local governments.
Direct investment by central enterprises in local construction:
In this way, it can directly use the resources and capabilities of the best enterprises to carry out infrastructure construction or industrial upgrading in the local area, which will help stimulate local economic growth.
SOEs usually have strong financial and technical strength, and are able to start and complete projects in a relatively short period of time, and quickly generate economic benefits.
Through the investment of central enterprises, the financial pressure of local governments can be reduced to a certain extent and the risk of local debt can be reduced.
Special Treasury Bonds to Support Local Special Construction:
Special treasury bonds are bonds issued for specific purposes to finance the construction of major local projects, such as public health, transportation infrastructure, etc.
Through the issuance of special treasury bonds, local governments can be provided with the necessary financial support to improve infrastructure and enhance public service capacity, thereby promoting economic development.
The use of special treasury bonds usually has clear project orientation and use requirements, which helps to ensure the effective use and management of funds.
The issuance of special government bonds can also be used as part of fiscal policy to stimulate the economy by increasing investment, especially when the downward pressure on the economy is high.
In the long run, the purchasing power of money tends to decrease due to the time value of money and the effects of inflation. At a reasonable interest rate, the debtor is able to borrow money at a lower cost, which is known in economics as the "time value of money."