Ministry of Finance: Special treasury bonds due in 2025 will be issued in equal amounts on a rolling basis without increasing the fiscal deficit

The Zhitong Finance App learned that on December 12, the Ministry of Finance will launch the issuance of renewed special treasury bonds due in 2025. In an interview with reporters about this, the relevant person in charge of the Ministry of Finance said that with regard to the 750 billion yuan special treasury bonds due to expire on December 12, 2025, the Ministry of Finance will continue the practice of issuing them on a rolling basis to issue special treasury bonds renewed in equal amounts to the banks concerned. According to the relevant issuance arrangement, 750 billion yuan of special treasury bonds due and renewed in 2025 will be targeted to relevant banks in the national interbank bond market. The types of maturities include 400 billion yuan for 10-year terms and 350 billion yuan for 15-year terms. Renewed special treasury bonds due in 2025 are rolling issues of the original special treasury bonds in equal amounts. They still correspond to the original assets and liabilities, and do not increase the fiscal deficit.

The original text is as follows:

Relevant Ministry of Finance officials answered questions from reporters on issues relating to the issuance of renewed special treasury bonds due in 2025

The Ministry of Finance will issue renewed special treasury bonds due in 2025 on December 12. A relevant person in charge of the Ministry of Finance was interviewed by reporters about this.

1. Q: Please tell us the background of the issuance of renewed special treasury bonds due in 2025.

A: In 2007, with the approval of the State Council and approval of the Standing Committee of the National People's Congress, the Ministry of Finance issued 1.55 trillion yuan of special treasury bonds as a source of capital for China Investment Co., Ltd. The term is mainly 10 or 15 years, and expires one after another starting in 2017. When some of the above special treasury bonds expire in 2017, 2022, and 2024, the Ministry of Finance issues targeted special treasury bonds to the relevant banks for repayment. For the 750 billion yuan special treasury bonds due to expire on December 12, 2025, the Ministry of Finance will continue the previous year's practice and continue to adopt a rolling issuance method to issue the relevant banks in equal amounts and renew special treasury bonds due in 2025. The funds raised will be used to repay the principal amount due in that month.

2. Q: Please talk about the arrangements for issuing a renewed special treasury bond due in 2025.

A: Special treasury bonds of 750 billion yuan due and renewed in 2025 will be issued to relevant banks in the national interbank bond market. The types of maturities include 400 billion yuan for 10-year terms and 350 billion yuan for 15 years. The issuance process does not involve social investors, and individual investors cannot buy. Renewed special treasury bonds due in 2025 are rolling issues of the original special treasury bonds in equal amounts. They still correspond to the original assets and liabilities, and do not increase the fiscal deficit.

This article was selected from the “Ministry of Finance” official website, Zhitong Finance Editor: Jiang Yuanhua.