HAIKOU, June 29. /TASS/. The Chinese Finance Ministry has allocated a quota for the issuance of special bonds to the Hainan Province to combat the negative consequences of the epidemic. According to the Hainan Daily, their total volume can reach up to 15.3 billion yuan (about $ 2.16 billion).
According to the newspaper, when issuing bonds, the regional authorities will have to guarantee compliance with several principles: the funds received as a result of the issuance of securities should be directed to cost-effective projects in public health and improving the quality of life of the population. Moreover, the funds can be directed to soft loans for venture capital, employment growth, lump sum payments to people in difficult financial situations, as well as measures to reduce rent for enterprises.
According to the Hainan Daily, the Hainan Provincial Finance Authority will soon send inquiries to the county and city authorities to provide lists of projects for which bonds will be issued. Following that, the Hainan government will consider them and transfer them to the Chinese Ministry of Finance.
As the newspaper previously reported, in 2020, Hainan Province issued bonds totaling 33.65 billion yuan (about $ 4.75 billion), which accounts for 79.9% of the limit set by the Chinese Ministry of Finance for this year.