People‘s governments of the province， autonomous region and municipality directly under the Central Government， ministries and commissions of the State Council， and organizations directly under the State Council：
Since the conclusion of the 15th National Congress of the Party， all localities and departments have made some achievements in quickening enterprise restructuring in accordance with the requirements of establishing the socialist market economic system.
However， in the course of the structural reform of medium- and small-sized state-owned enterprises and collective enterprises， quite a few localities present the phenomenon of taking enterprise restructuring as an opportunity to suspend， evade or reject financial debts.
This activity has seriously undermined the social credit relations and resulted in a large quantity of suspended creditor‘s rights in financial institutions， as well as a drop in quality of credit assets and drain on state-owned assets.
For the purposes of standardizing the structural reform work in medium- and small-sized state-owned enterprises and collective enterprises， preventing and curbing acts of evading or rejecting financial debts in various forms， conscientiously protecting the legitimate rights and interests of financial institutions， and taking precautions against financial risks， this Circular regarding strengthening the administration of financial creditor‘s rights in the structural reform of medium- and small-sized state-owned enterprises and collective enterprises is hereby issued as follows：
1. To Strengthen Conscientiously the Guidance and Supervision over Enterprise Restructuring
All localities and departments should proceed with the general interests， conscientiously carry out state policies and measures for enterprise restructuring， strengthen the guidance and supervision over the structural reform work in medium- and small-sized state-owned enterprises and collective enterprises， standardize behaviors in enterprise restructuring， and resolutely curb acts of evading and rejecting financial debts in various forms.
Local people‘s governments should attach great importance to the preservation of financial creditor’s rights in enterprise restructuring of their respective regions and lend strong support to financial institutions in the administration of their financial creditor‘s rights； they are strictly prohibited from shielding and conniving at the acts of evading and rejecting financial debts committed by enterprises in the restructuring.
2. To Confirm Financial Debts According to law by Enterprises in the Restructuring
The structural reform of medium- and small-sized state-owned enterprises and collective enterprises shall be carried out in strict accordance with relevant state laws and policies as well as the provisions of the Circular Concerning Prevention of Drain on Bank Credit Assets （Yinfa  No.40） promulgated by the People‘s Bank of China， the State Economic and Trade Commission and the Administration of State Property.
All enterprises must devote their whole attention to financial institutions‘ views on the preservation of their creditor’s rights in the restructuring and confirm financial debts according to law， no matter whatever forms of the restructuring they will adopt.
Those enterprises whose financial debts have not yet been confirmed shall not start the restructuring work and departments concerned shall not handle formalities for examination and approval of their restructuring and registration and shall not renew their business licenses.
Evasion and rejection of financial debts occurring in the restructuring of enterprises before the issuance of this Circular must be corrected without delay and the financial creditor-debtor relationship must be reestablished.
3. To Take an Active Part in Enterprise Restructuring and Maintain the Safety of Financial Creditor‘s Rights According to Law by Financial Institutions
The structural reform of medium- and small-sized state-owned enterprises and collective enterprises shall require the participation of financial institutions if their creditor‘s rights have been involved.
The financial institutions should exercise strict supervision over the verification and evaluation of assets in the restructuring of enterprises.
All financial institutions should conscientiously practice a responsibility system for the preservation of financial creditor‘s rights， make a great effort to check up and confirm creditor’s rights， maintain the safety of financial creditor‘s rights in real earnest， and report at regular intervals the preservation of financial creditor’s rights to the People‘s Bank of China.
For those regions where financial debts are suspended， evaded and rejected seriously， all financial institutions having claims on these financial debts should lower the credit grades of their branches in the regions.