Small finance big construction: Local debt rate far beyond risk cordon

Reporter: Deng Huaning Fong Reiwu Yong Ching reporter in Shaanxi, Ningxia, Inner Mongolia, Liaoning, Jiangsu and other places in the bank and economic departments to understand that many business people worry, some places in the current project when the excessive pursuit of scale, there are two risks should be highly vigilant: first, the debt rate is too high.　　　　Some financial supporting funds and urban construction fund ratio reached 1:10, the debt rate far exceed the risk cordon, and some government financing platform seriously insolvent, has long been bankrupt; second, some banks do not guarantee to the government financing platform "throw money", the loan risk situation is grim. "Small finance, big urban construction" phenomenon in the interview, the General reporter learned that the local revenue in recent years to maintain rapid growth, some annual growth rate of 20%-30% growth.　　But in this round of development, the local government mainly relies on the bank funds to invest in the project construction, the debt scale is 10 times times even 20 times times growth, with small finance the big urban construction phenomenon is widespread in the east and the west, some places debt rate far surpasses the risk control vigilance scope. The new UNITA in Inner Mongolia is an underdeveloped area in the autonomous region, with a revenue of 1.5 billion yuan for 2008 years, a local disposable income of 1 billion yuan and a 2009-year planned fixed asset investment of 12.6 billion. According to the data provided by the Government of Ningxia Shizuishan, 2008, Shizuishan's disposable income was 1.998 billion yuan.　　The city identified 110 key projects in 2009, with a total investment of 46.6 billion yuan, of which 60 urban infrastructure projects have started 52 and the total infrastructure investment is about 10 billion yuan. The reporter learned from Shaanxi Province Yulin government, the city 2008 years disposable financial resources for 7 billion yuan, plans from this year 4 years, invests 66 billion yuan to promote the transportation infrastructure construction which mainly by the highway, the railroad, plans to complete the traffic construction investment 13.57 billion yuan this year.　　Located in the underdeveloped areas of Subei city, there are 1.5 billion urban Huaian in 2008, and the urban construction infrastructure in the next two years is 24.3 billion yuan. The professor of Management College of Ningxia University said that in order to control the excessive debt of the local government to destroy the economic development, many provinces and cities in China have strict regulations on the debt rate of local government in recent years, for example, the government of Zhejiang Province stipulates that the debt ratio of local governments (the ratio of debt balance to The ratio of debt service to the amount of disposable financial resources of the year was controlled at about 15% per cent; "However, in this round of economic start-up, some local governments are far more indebted than they are financially, and are actually overdrawn." "Reporter visits found that in recent years, local governments have generally set up a variety of financing platforms, urban construction, transportation, land, public welfare undertakings and other types of government assets as collateral, revenue as a repayment source, to bank loans to obtain construction funds." In the new round of construction, the excessive indebtedness of local government financing platform is serious, and the registered capital of urban construction financing platform in some developed area in the east is onlyThere are less than 100 million, but the annual loan construction scale reached billions of yuan. "Some banks don't even guarantee to throw loans into government platforms. Reporter survey learned that less developed areas also appeared by the prefecture-level cities with a variety of assets as collateral, access to loan indicators, and then replace short-term loans into medium and long-term loans, the city's lending indicators to move to the county practice. A prefecture-level government official told reporters, "the major state-owned commercial banks in the beginning of the headquarters to determine the size of loans around." Our city last year actively reserves the project, and through the branches of the major banks to its headquarters to declare, to fight for greater loan size. The city this year, the departments, committees, offices and offices of the Office of the Assets Assessment, and then as a loan guarantee collateral. In the first quarter of this year, the size of the city's loans has reached its annual level. Because the county land is worthless, the loan is difficult. Through the city more loans, and then move the loan indicators to the county projects, to speed up the development of the county. "The interest on this term is difficult, I'm afraid the principal will be left to the next" local government in the past few years, urban construction funds mainly rely on "land finance" income. Less developed areas of local budget income is mainly "eat finance", and then remove public utilities funds, a prefecture-level cities can take out a year to build a few billion is very good. In the past few years, the rapid development of the real estate market, the soaring land prices, so that local governments have the ability to expand the scale of urban construction, by selling land as a place to increase revenue and improve departmental welfare shortcuts. The land transfer income became the local "second finance", some of which accounted for more than 30% of the revenue of the year.　　But since last year, land receipts have shrunk sharply, the economy departure local taxes are also declining, the repayment of the source of urban construction loans is a big question. According to Ningxia Wuzhong Yanchi County cadres reflect that the county's annual financial revenue is only more than 200 million yuan, this year, the County party committee, the government has arranged 8 major categories of 40 urban construction projects, the proposed investment of 840 million yuan, of which the small hole, such as 5 areas of the transformation, demolition and reconstruction area of 460 acres, need to remove enterprises and households 482 households. When some tenants are unwilling to relocate, the Yanchi County Committee, deputy County Magistrate Kevenze on the one hand declared: "Full respect for public opinion when making decisions, let the demolition people really have the right to know, decision-making power, fully mobilize its enthusiasm, initiative." To the disadvantaged groups, laid-off workers, the elderly and other practical problems must be considered comprehensively, supporting the solution, to maintain the fundamental interests of the demolition people.　　"But in practice, the main leadership of the Yanchi County has signed the document directly, requiring the suspension or other punishment of the servants and workers who are unwilling to relocate until they agree to move."　　Ningxia Construction Engineering Group Electric Company Union chairman Xiaojun told reporters, said that development is the hard truth, but hard development does not make sense, thousand busy million busy do not speak scientific development white busy, thousand bitter million bitter blindly development of the most bitter, the government if the long-term development of the road of urbanization, if there is no funds to do the backing, hidden dangers Ah, the ultimate bitter fruit all let the people eat! LiaoningLin, director of the CBRC, said that one of the outstanding problems in this round of development is the large number of local government project loans in less developed regions. Either the assets are not enough or the funds are not enough to guarantee them financially. The problem is that some local governments have to bear the debt, can the local financial capacity to pay? Some local revenues of 3 billion or 4 billion a year, the annual commitment of 2 billion or 3 billion debt is almost, but the commitment of billions of debt is overloaded.　　　　The loan cycle for local infrastructure projects often reaches 5-10 years, when the bank and the government are in a different crop, and neither the lender nor the borrower is considering how the money will be repaid in the future. Arrears of project funds have not yet paid off and there is the phenomenon of unit financing the excessive indebtedness of local governments has been the "number one killer" of China's economic development, after the rapid growth of financial strength in recent years, the local debt problem has been resolved?　　In the interview, the reporter heard some enterprises and the masses reflected that the government projects in arrears to the project has not been completely resolved, some loans for more than 10 years not to return. Ningxia Construction Group Power Company Union chairman Xiaojun angrily told reporters that as of the end of 2008, Ningxia Construction Engineering group has 1.032 billion yuan in arrears, of which 4.4 billion is at all levels of government and department arrears. The electric construction company was owed 260 million projects by 34 units. "How dare we take government projects in the future?" he asked. "Now is not the call to build a good faith society?" But it is some grassroots governments that take the lead. Not only that, after the main leadership of the provincial party committee has been resolved several times, our debt to the end of June this year basically no major changes, or more than 200 million yuan, but we as a case to be sued reached 57, workers even pay wages are not out, all kinds of insurance arrears close to tens of millions of dollars, in the longer term, enterprises will not survive.　　"Ningxia Construction engineering group Electric Building company manager Wu Zhengren said." Ningxia Road and Bridge Engineering Co., Ltd., Deputy Secretary of the party group Yang Xuero told reporters that the government owed the project is an old problem, the company now does not contract the government works, because the long-term not back to the project section.　　He gave the reporter a list of the government arrears, Yinchuan government arrears of the project 11.7 million yuan, Helan construction de Sheng Industrial Park arrears of the project paragraph 25.7 million yuan, the road construction in Tongxin County arrears of 2.68 million yuan, Shizuishan Traffic Bureau arrears of the project section 4 million Yuan ... Reporter also learned in the interview, Heilongjiang province Lanxi County 14 ago for the construction of highways to the masses of funds, so far the money has not yet returned, triggering social concern.　　Yulin, a grassroots cadre in Shaanxi province, told reporters that recently some underdeveloped areas have appeared in the government departments to raise money, and some promises can get 15% return, which indicates that the local construction scale too big funds tight, began to borrow everywhere, Peter Paul. Experts say local debt was once the "number one killer" of China's economic development. 1999, four asset management companies were established, before and after the total stripping of four state-owned commercial banks non-performing assets of 1.4 trillion yuan. In this international financial crisisIn the process of stimulating economic growth, we should control the risk from the high level of financial security and national strategy, strict regulatory standards.　　　　The urgent task is to transfer the bank credit from quantity expansion to quality improvement, check the loan before loan and review, especially meticulous management of local government projects, control the good risk.　　Link] "This round of big investment, the bank credit funds played a major role" reporters from the Shaanxi Provincial Information Center learned that this year, all over the country investment momentum is relatively adequate, the first quarter, China's eastern, central, Western and northeast regions of the four regional urban fixed assets investment of 2,323,720,000,000 yuan, an increase of 28.1%, increased by 2.1%. Among them, the east and the central region of the urban fixed assets investment amount of negative growth, while the western region and the northeast area soared.　　Data show that the western region to complete the investment in fixed assets 504.25 billion yuan, an increase of 46.1%, increase 18.4%, the northeast completed 108.4 billion yuan, the year-on-year increase of 58.8%, increase 23.5%. In the western region, there are 5 provinces and cities in the western region with a growth rate of more than 50%, namely Ningxia (54.2%), Shaanxi (52.8%), Qinghai (52.5%), Yunnan (51%), and Sichuan (50.5%).　　In terms of total, the top three were Sichuan (158.702 billion yuan), Guangxi (69.61 billion) and Shaanxi (61.038 billion yuan). Reporter to understand that this year, the western region and the northeast from the project promotion, financial security, policy support and many other aspects of development conditions are relatively good. National policy guidance has attracted large banks to increase their investment in less developed areas. China Construction Bank and Shaanxi Provincial People's government signed a memorandum of strategic cooperation in April this year, which will provide 120 billion-yuan credit support for key construction projects such as transportation, energy, equipment manufacturing and urban infrastructure in Shaanxi Province in the next three years.　　The National Development Bank and the Ningxia Hui Autonomous Region signed a credit agreement, which plans to invest 80 billion yuan this year to support the construction of urban and transportation infrastructure in Ningxia, which has invested 10 billion yuan in 1-April. "Now is the opportunity for infrastructure investment for many years, first, the credit policy is loose, the second is low input cost", many cadres in less developed areas think. National Highway, railway, airport construction Gate, a number of national major projects have launched.　　For less developed areas, the transport infrastructure and urban construction facilities in less developed areas are already lagging behind the developed regions, and the current prices of raw materials such as steel and cement are at rock bottom and bank loans are easy. In addition, the distribution of credit funds in China has always been more developed areas, less developed areas. In the face of a new round of development opportunities, for less developed regions, in the attraction of investment to be rapid with the situation in the country, otherwise there will be no future, the gap would be more and more big.　　Only by expanding the scale of credit to quickly drive the whole, to win their own rapid development and growth. "This round of massive investment in growth, bank lending has played a major", Jiangsu Banking Regulatory Bureau director Yu said that the country's 4 trillion investment plan consists of about 4 parts, of which, the central government to take out 1.18 trillion, local issue of debt 200 billion yuan, local finance took out the bottom of the money, the rest is Bank loans.　　Foreign investment has stopped since the end of last year, so most of the 4 trillion is bank loans. "In addition to the central 4 trillion investment plans, all over the project to reach 40 trillion, including a large proportion of infrastructure, the country identified major infrastructure construction projects, local supporting funds to reach 20%, local finance can come up with matching funds is good." And the local infrastructure, most of which relies on bank loans. A cadre of Shaanxi Provincial development and Reform Commission told reporters.