What Is Internal Debt?

Domestic debt is a debt formed by various debt entities that target domestic investors through the issuance of bond certificates denominated in their national currency, or by the conclusion of a specific contract, also known as "domestic debt". In a broad sense, it usually refers to the debts formed by financial institutions such as the central government and local governments, public bodies, enterprises and companies, banks, etc. in the country by issuing bonds or by borrowing, leasing, and deferred payments. The narrow sense only refers to the debts formed by the above-mentioned fundraising entities in the form of issuing bonds. The main purpose of the government's domestic debt is to make up for the temporary deficit of the fiscal deficit or the state treasury funds, and it has increasingly become an important means for the government to regulate the economy.

[nèi zhài] Right !

Domestic debt is a measure in which each debt subject targets domestic investors and is denominated by issuing national currencies.

Differences from external debt Internal and external debt are two symmetrical concepts. on

The history of China's internal debt The domestic debt in modern Chinese history began in the late 19th century, that is, the "interest loan" borrowed from China by the Qing government to meet the military needs of the Sino-Japanese War of 1894, and the subsequent issue of Zhaoxin stock (1898) and "patriotic" Public debt "(1911). From 1912 to 1926, the Beiyang Government issued more than 20 domestic debts, with an issuance amounting to more than 600 million yuan. From 1927 to 1936, the National Government issued more than 2 billion domestic public debts. After the war of resistance against Japan, it continued to issue a large number of domestic public debts.

During the New Democratic Revolution, the Communist Party-led base government issued various domestic public debt. After the founding of the People's Republic of China, the Central People's Government issued the People's Victory Discounted Public Bonds in 1950, and between 1954 and 1958, it issued national economic construction bonds, totaling more than 3 billion yuan. Until then, China did not issue internal debt. With the reform of the economic system and the development of the socialist economy, the issuance of domestic bonds has become an important means for the Chinese government to raise funds directly from the capital market. From the end of 1981 to 1990, the Chinese government has issued six types of bonds, including treasury bills, special government bonds, fiscal bonds, key construction bonds, national construction bonds, and value-guaranteed bonds, with a cumulative issuance of more than 100 billion yuan. Since the trial of the transfer of treasury bills in cities, China's bond market has developed rapidly with treasury bonds as the main body. In 1990, the treasury bond market has expanded to more than 400 cities above the prefecture-level level in the country. Since 1990, China has also established in Shanghai and Shenzhen. The stock exchange.