The CBRC is looking for local debt experts to say it will take 6 years to repay the land.

"China Economic weekly" reporter Bang Jialong | Shanghai report March 23.　　A year ago this day, the central bank and the CBRC issued a joint request to "support the conditional local government to form a financing platform to broaden the central government investment projects supporting funds and financing channels." In this year, the wording has been sudden. The national banking supervision system, including Shanghai Banking Regulatory Bureau, has held a special meeting, and will "effectively prevent and defuse the government financing platform enterprise credit risk" as one of the key tasks this year.　　At the same time, the emergency inventory of local debt has been launched. CBRC: "Reduction of local debts" the State Council and the CBRC attach great importance to the authenticity of local debt inventory work, has given us an inventory of the overall goal of reorganization: unpack, restore, risk classification, strong preservation, strengthen collaboration, overall evaluation.　　Shanghai Banking Regulatory Bureau related people told reporters. For a long time, local financing platforms have been carrying out "government projects", and the county-level government has a great voice on banks, which leads to the lack of the necessary knowledge about the business situation and the risk situation of these financing platforms by banks and other financial institutions. (See our 8th 2010 cover story "The Local debt crisis") the CBRC proposed the "solution package restore, again, first of all, the government financing platform enterprises in the end of 2009 loans by pen to comb, each of the loans to carry out a review and rigorous risk screening, the project loans to the key audit approval procedures, EIA results, land use approval, project capital in place, bank internal approval and guarantee implementation of the requirements.　　Secondly, the liquidity loan should focus on the actual use of loan funds, the internal examination and approval of the Bank and the implementation of security requirements, at the same time, the household register, according to enterprises to establish credit account. "It's a big rework," strictly in accordance with the requirements of the relevant documents caused us a great deal of work, "the head of the credit Department of a state-owned bank Shanghai Branch told reporters:" At present, the State Council and the relevant departments on the local debt on how large there are different statements, and these debts are already bad class assets, What is questionable is uncertain. Only by knowing the truth can we find a way to minimize the loss.　　"To" risk classification, preservation of a strong "will require the bank in the" Unpack and restore "work, based on the actual risk status of loans to seriously carry out risk identification and risk classification work, and timely take all effective risk preservation measures.　　According to Yan, director of Shanghai Banking and Regulatory Bureau, compared with the Shanghai Municipal Finance platform, the solvency and guarantee measures of the county-level government financing platform in some districts are worthy of high attention, and the "remedial work" should be done for the identified problems. The materials provided by the Shanghai Banking Regulatory Bureau to the China Economic Weekly show that the city will finance platform enterprise loans in accordance with the source of repayment are divided into three categories: the first category, for a stable and adequate cash flow and the first repayment source, economic sustainability, offset (quality) goods complete and complete formalities of the loan, according to commercial principlesContinue to provide credit support; the second category, for lack of the first repayment source, cash flow insufficient loans, should actively implement the second repayment source, to ensure that the repayment is guaranteed; the third category, to do not meet the relevant provisions to the overcapacity industry, illegal misappropriation or funds idle loans, to be determined to take a variety of measures to recover early. However, it is noteworthy that, because in recent years, the Shanghai Banking Regulatory Bureau to encourage the "syndicated loans" to spread the credit risk, but inadvertently to these government financing platform credit "big rework" caused trouble, as most of the current government financing platform in two and more than two banks to transact business,　　How to master the overall risk situation of government financing platform enterprises is a difficult problem. In response to this difficulty, the Shanghai Banking Regulatory Bureau proposed a "strengthened collaboration, overall assessment" approach to solve. Taking a city as an example, the banks that provide loans include ICBC, CCB, Pudong FA Bank and Shanghai Bank four.　　In this "big rework" in the ICBC became the "main review bank" for the overall assessment of loan risk, while the other three banks should be timely and accurate to provide the relevant data and information, and ICBC issued solvency Analysis and risk assessment report.　　　　From the national scope, the local financing platform of the inventory rectification work is being pushed forward, but more and more institutions have shown the results of the inventory is not optimistic. Experts: Local land sales are owed for 6 of years to the reality of the local debt scale, "the future of income and tax revenues may not be enough to repay the current local financing platform of the huge debt."　　"Stephen Green, head of research at Standard Chartered Bank in Greater China, expressed his concern at the China Economic Weekly."　　The industry believes that, due to the above reasons, in the short term, the local government is basically powerless to say no to the "land price Climb", and "price stability or even climb" has become a necessary condition for "land price climbing". In the view of Stephen Green, local governments rely heavily on land sales, which not only earn revenue directly from the sale of land, but also use land as collateral to obtain bank loans.　　Over the years, local infrastructure projects rely on local financing platforms, which have been able to get "a steady stream" of capital and rely on "soaring" land prices. In the late 90, Shanghai was the first municipality to use local government financing platform to solve the shortage of construction funds in local finance. After Shanghai, Chongqing, since 2002, also embarked on the use of "land resources" bundled with local investment and financing platform to promote local economic development.　　Since then, the Shanghai and Chongqing models have sprung up across the country. Stephen Green takes Chongqing municipality as an example to illustrate. 2002, Zhongqing began to establish land acquisition, reserve, renovation system. In 2003, a number of Zhongqing government investment platform was set up, with Chongqing City Investment company led by the eight investment platform successively announced the establishment, the government will be part of the acquisition of land into these wholly state-owned companies. In 2008, for example, the Chongqing government took 20 sq km of land as capitalInjected into Chongqing Development Investment Co., Ltd. to provide financing for the latter.　　According to Stephen Green, many of the city's investment companies have received 60%~80% bank loans for "land valuation", and the risk of excessive land valuations is often due to the need for more money. If the land is assumed to be a mortgage under 70% of the valuation, and all the debts of the local financing platform are secured by the land assets (in some cases the local government acts as a loan guarantee, but most of the loans are mortgaged by land).　　If the local financing platform is really as estimated as the outside world, there are 6 trillion yuan of debt, which means that the value of the land as a bank loan is worth 8.5 trillion yuan (assuming land valuation is accurate), this amount is nearly 3 times times the total value of land transfer in the past five years (2005-2009). Since many infrastructural projects were not effective in 2010-2011, according to Standard Chartered Bank, it would take 6 years to repay the 6 trillion-yuan debt by 2009 years ' income from local government land sales, and it would take 13 years to repay it with 2008 years ' Land sale income. And that does not include interest on debt. There will be a lot of pressure on local governments to repay their debt and principal.