Extended data:
There are three kinds of national bonds in China: voucher bonds, bearer from bond bonds and book-entry bonds.
Certificate-based national debt: refers to the national debt issued by the state by filling out the receipt of treasury bills instead of printing physical certificates. It is in the form of treasury bonds receipts as creditor's rights certificates, which cannot be listed and transferred, and interest will accrue from the date of purchase. During the holding period, if the holder needs to withdraw cash under special circumstances, he can redeem it at the purchase outlet in advance. When redeeming in advance, in addition to repaying the principal, interest is calculated according to the actual holding days and the corresponding interest rate grade.
Bearer from bond: it is a kind of real national debt, which is issued by recording the creditor's rights in the form of real bonds (year of issue, bond amount, etc.). Are printed on the front of the bond), also known as real bonds. It is the longest issued national debt in China.
Book-entry treasury bonds: also known as paperless treasury bonds, are accurately defined as bonds issued by the Ministry of Finance in a paperless way, which record creditor's rights in a computer bookkeeping way and can be listed and traded.
Repayment method
The method of gradual repayment in stages. That is, a national debt stipulates several repayment periods, and the principal is fully paid off when the national debt expires.
Revolving withdrawal and repayment method. That is to say, a certain proportion of national debt is determined by drawing lots regularly according to the national debt number until the repayment period ends, and all national debt is paid off by drawing lots.
One-time repayment at maturity method. In other words, the national debt is paid off in one lump sum according to the par value of the maturity date.
Market purchase and sale compensation law. That is, to buy back the national debt from the securities market, even if it expires, this national debt has been fully held by the government.
Replace the old repayment method with a new repayment method. That is, by issuing new treasury bonds in exchange for expired old treasury bonds.
sources of fund
Adopt the budget. The government will include the annual repayment of national debt as a fiscal expenditure item in the expenditure budget of the year, and normal fiscal revenue will ensure the repayment of national debt.
Use fiscal surplus. When there is a balance in budget implementation, this balance will be used to pay the principal and interest of the national debt due in the current year.
Set up a sinking fund. The government budget sets up a special fund to repay the national debt, and allocates special funds from the fiscal revenue every year to set up a fund dedicated to repaying the national debt.
Borrow new debts to pay off old debts. The government issues new bonds as a source of funds to repay old debts. The essence is the extension of the debt period.