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CBRC Will Promote Local Government Stock Platform Loan Risk Mitigation

2011/10/25 13:16:00 27

China

CBRC

Vice chairman Zhou Mubing said today that the CBRC will pay close attention to the rectification and credit enhancement of local government financing platform loans. The next stage, on the basis of strictly controlling new loans in the early stage, the CBRC will focus on promoting the risk mitigation and upgrading of stock platform loans.


Zhou Mubing said that all stock platform loans must be implemented with qualified and sufficient value pledge, and the repayment method should be rectified.

All platform loans with public interest assets as collateral should be legal non public interest.

Assets

In the case of full replacement, any platform loan secured by the government's undertaking of guarantee and the land pfer income secured by the landless use warrant shall be supplemental in time with legal and effective mortgage guarantee.

For the whole platform loan, the commercial banks need to negotiate and supplement the loan contracts with the local governments and platform customers.

perfect

After the project is completed and put into operation, it will repay the capital once a year and make profits with the capital, so as to realize the scientific repayment and reduce the pressure of concentrated repayment.

At the same time, if the original loan is not reasonable, it can be appropriately extended or renewed once the loan is satisfied with the implementation of the guaranty mortgage and the completion of the contract in accordance with the actual match of cash flow and repayment of principal and interest.


At the same time, Zhou Mubing said, "investment impulse" and "investment hunger" are the stubborn diseases of China's economic development and economic improvement.

At present, some places have not yet completed the renewal project, and have proposed a huge new investment plan, resulting in extraordinary credit demand.

It is suggested that the departments concerned should select queues for domestic construction projects, formulate a list of items of "protection, pressure, urgency and slowness", and classify management so as to ensure that credit funds are concentrated in the limited construction and operation of projects under construction.


 
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