This article is from WeChat public account:Economic Observer (eeo-com-cn), author: Du Tao, from the title figure: vision China
Sun Shuangxi’s daily schedule is basically running outside to find money during the day and returning to the company to meet in the evening to deal with various emergencies. He felt that every day he supported, he felt the rest of his life.
孙双喜(a pseudonym), a city investment chairman who has worked in the southwestern region of the deputy director of the Finance Bureau, which is also in line with the country. Most of the people who have invested in the city’s investment experience, those who have had experience in the work of the Finance Bureau have come to the board of directors of Gancheng Investment to be smoother.
This is a sigh after he just sent a collection of financial institutions. After that, Sun Shuangxi said to a person in a row of suits sitting on the sofa outside the door: “Sorry, please wait for me.”
“All come to collect.” Sun Shuangxi smiled and smiled. Sun Shuangxi’s eyes are covered with bloodshot eyes, and the bags under his eyes are blue and black. It should not be a good rest for a long time.
In the office of Sun Shuangxi, there are a bunch of people squeezing fierce disputes in the conference room. It turned out that the investor who bought his home city to vote for non-standard products went directly to the door to discuss. One of the investors bought a house for their children and they have already paid a deposit. Now they have to pay the down payment. If the non-standard product cannot be redeemed, the deposit will be deducted, and the child’s wedding period will be delayed. In the end, the investor himself cried in the conference room.
The city was responsible for receiving the little girl and was also cried and could only be accompanied by one voice.
Whenever he asked him what he had, Sun Shuangxi came to the phone and was the bank governor of the local bank. Sun Shuangxi accompanied the laughter and replied with enthusiasm to the details of the loan approval. All the performances were like the president who was opposite the office.
After hanging up the phone, Sun Shuangxi said helplessly: “Now it is changing from outside the province.After the difficulties, in order to pay the principal and interest, you can only put pressure on the local financial institutions. The relationship between the two sides is now very rigid. But there is no way, at a critical moment, you still have to seek the support of local financial institutions. It turned out that I was the deputy director of the Finance Bureau. The banks went to my office and they were respectful and hoped to match the financial deposits. Now, all in reverse. But can I not come to the city to vote? I can refuse to arrange it on the organization? Many things that require superior assistance are only convenient for people who have financial backgrounds.
The current situation is for the financing platform and the local government to pay for the loans of the previous years. In the October 2014 issue of No.43, “State Council’s Opinions on Strengthening Local Government Debt Management”, the local government changed From the direct financing of financial institutions to the local government to provide letters of commitment, letters of guarantee, etc., from 2014 to around 2017, a large number of non-standard lending from financial institutions to the financing platform. The time is basically 2-3 years, and the repayment period is concentrated in 2017-2020.
A financial institution who has been engaged in non-standard business told reporters that it is now at the end of 2019. For many local governments and financing platforms, they have tried their best to empty up the financial resources and return most of the debt, but there are May have to fall before dawn.
difficulty
The city where Sun Shuangxi is located has a GDP of 40 to 50 billion yuan last year. The general budgetary revenue is 3-4 billion yuan. Considering the land sales income, its comprehensive controllable financial resources can reach more than 10 billion. And those financial institutions also think that the economic data of Sun Shuangxi’s area is good, and the city investment is the main body of the old-fashioned debt issue. It has been repaying the principal and interest, and has a good reputation in the capital market before he is willing to lend him money.
Sun Shuangxi also feels that whether it is GDP or fiscal revenue or the real estate market and manufacturing base, it is very good in the western region. There are also three bond-issuing companies with a rating of AA in the district, which in the past have been highly recognized by financial institutions. However, in the city investment, in the past few years, a large number of non-standard borrowings have resulted in an unreasonable debt structure. The financing period is generally 2-3 years, and the shortfall of funds to be repaid after maturity in the short term is too large. Once the refinancing environment changes and subsequent financing fails, the dilemma will emerge.
The chairman of the city investment company, which used to be in the past, has a crying voice and a very depressed will, so that a financial institution who comes to collect money is not good at talking.
After the stage of looking for money, Sun Shuangxi decided to talk with all financial institutions. The exhibition period is originally two years, and the extension period is one year, which is to become a three-year period.However, investors who need non-standard products agree to sign.
When negotiating with financial institutions, Sun Shuangxi’s daily schedule was basically running outside to find money during the day, and went back to the company to meet in an emergency at night to deal with various emergencies. “When is such a day, when is it a head. But as long as I am in this position for a day, I have to keep my position. Every time I support one day, I have the feeling of the rest of my life.”
The problem that Sun Shuangxi faced at this time was the difficulty of new financing for urban investment, and the difficulty of the extension or continuation of the original project. All his energy this year is guaranteed to pay the principal and interest. According to him, throughout the year, there was basically no new project in his district, and the projects under construction basically stopped. Immediately after the closure of the year, the wages of migrant workers still do not know how to solve them.
The above financial institutions told reporters that the city investment company did not pay the risk, only liquidity risk. Now the city investment of Sun Shuangxi is facing liquidity risk. However, there are problems at the city investment, although there are policy reasons, but more of it is not doing liquidity management. Before investing in a lot of low-income infrastructure projects, the income recovery period is long and the income scale is not large. .
Sun Shuangxi also figured out why there are difficulties? He said: First of all, many non-standard sources of funds are urban commercial banks and rural commercial banks. Now the regulations require that funds cannot be saved. This part of the funds must be redeemed. Secondly, many non-standard financial institutions have stepped on the thunder, and now they have to deal with the holes themselves. They want to continue to do so. Third, it is the minority who agrees to continue to do so, and also requires the addition of a city-level city investment company guarantee, which is also difficult in the city. Some institutions require us to return some parts first, and the rest of the exhibition period.
“I know that the third condition is not too much, but we really don’t even have a part of it. Even if we sign the extension agreement, we can’t perform it.” Sun Shuangxi said.
In the process of borrowing money, Sun Shuangxi even felt that he was discriminated against by financial institutions because he was in the west. He said: Many economic indicators in some areas of the eastern coastal areas are not as good as those in our county, but they have always been favored by financial institutions. We have a geographical bias. Moreover, there is still a lot of room for growth in the urban rate here. The area and amount of land sold each year is far greater than that of some coastal areas. We also have abundant resources here, low labor costs and great development potential.
“Investment, isn’t it an investment expectation? The non-standard financing products of our city investment are generally more than 8% for investors. The investors are growing up with us to share the dividend of economic development. Is such a high and stable product that has been held badly?” Sun Shuangxi felt.
Is there a way out?
Can Sun Shuangxi and the city vote he represents can find a new way out?
In fact, from 2014, Circular No. 43 began to separate the relationship between local government and financing platform, but for the way out of the financing platform, it has not found a suitable path. A senior urban investment researcher told reporters that he After thinking about the No. 43 document, the number of platforms should be reduced, but every time he went out to lecture, he found that the platform not only did not decrease, but also increased the trend.
The problem facing the current financing platform is not to find a way out in the future, but how to get through the current difficulties.
In order to pay back the money, 2019 special bond issuance and 2020 project declaration, Sun Shuangxi has made efforts, but his province’s special debt amount is originally small, so his efforts are in vain, and the reported items are all Was beaten back. “Commercial banks are indeed engaged in debt swaps, but that’s all next year. I have confidence in next year. The key is that at the end of this year, I am afraid I can’t support it now.”
The above-mentioned financial institutions told reporters that even if the special debt amount is allocated, it can only last for a while, and the amount of special debt is only a small amount.
Sun Shuangxi also knows that there are still several roads to choose from. He told reporters that financial institutions and investors are not optimistic about their district investment. But if they come in the name of the district government, financial institutions and investors are accepted. He also reported to the district secretary and the district head. However, the Ministry of Finance clearly stipulates that local governments cannot provide guarantees for city investment companies. Therefore, the leaders in the district, even if they have the heart, do not dare to act.
“Where we want the district government to give guarantees, we just hope that the district government can come forward and say something to financial institutions and investors. But which leader dares to take his own political life to gamble.” Sun Shuangxi lamented .
In fact, since the beginning of the No. 43 document, the Ministry of Finance has been strictly managing the local government’s illegal debts, whether it is a letter of commitment and a letter of guarantee for local government violations or a subsequent FPP financing, or even in previous years. The Ministry of Finance and relevant ministries also handled a number of local government officials and financial institution personnel who violated regulations.
So now, in order to pay for the payment, Sun Shuangxi began to use a large amount of money, and the daily interest rate is as high as 2 to 3 points. I used it for a few days, then for a few weeks, and then for a few months. Now, the U-turn funds are not willing to lend to Sun Shuangxi, fearing that he will not be able to.
The U-turn fund is a usury. Used for crossing the bridge for temporary capital turnover. Especially expensive, counted by day.
Now, there are already financial institutions preparing to sue Sun Shuangxi’s city investment. He told reporters, “I understand the financial institutions doing this. But if I have become the executor, I can’t even sit on the plane or the high-speed rail. How can I go out and run the funds? How can I pay back?”
Although there are many problems and even be sued by investors, Sun Shuangxi is very confident about the future of his city investment: “In fact, next year, I am very confident. In our stock debt, More than 60% are reported to the Treasury’s implicit debt system. As long as the commercial bank’s debt replacement is gradually in place, this part of the debt pressure will be resolved. In other parts, I still have new credits every year, and it is no problem to resolve 20%. The conditions in our district are relatively good, the population is large, and the real estate market is relatively prosperous. There were more than 1,000 mu of land before, and it has been sold to well-known real estate developers. But real estate developers have not paid the transfer fee. We also know that real estate developers are difficult. There are not many real estate developers who can accept more than 1,000 mu of land at a time, so we have not pressed. If the real estate recovery in the next year, the transfer of this part of the land will be settled, the debt problem will be resolved.”
This article is from WeChat public account:Economic Observer (eeo-com-cn), author: Du Tao