www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

Biz
Experts concerned over huge loans to local govts
2010-May-13 07:58:51

Tightening measures may make it hard for firms to repay their debts

BEIJING - About 40 percent of new loans in the first quarter went to local government bodies, said an economist with the State Council's Development Research Center (DRC), with analysts warning that a potential crisis is looming.

Wei Jianing, deputy head of macroeconomic research department at the DRC, said the scale and debts of these local government-owned bodies - mainly financing companies using land and fiscal revenue as collateral - has been swelling rapidly, and may pose great risks to the economy.

"In the past, a government usually had two to four financing arms under its jurisdiction, but the number grew to 10 in 2009 under the country's proactive fiscal policy and loose monetary policy needs," he said, adding that the various levels of government investment and financing companies totaled more than 3,800, 70 percent of which are at district or county level.

The debts of these arms have surged to 6 trillion yuan in 2009 from 1 trillion yuan in early 2008, said Wei. In 2009, new loans to those financial arms reached about 3.8 trillion yuan, 40 percent of the 9.59 trillion in new credit from China's banks, he said.

Jia Kang, director of the Institute of Research at the Ministry of Finance, also said this month that he is not sure about the exact amount of local government debts, but said some researchers estimate they could amount to more than 8 trillion or even 11 trillion yuan.

Analysts said the central government's recent tightening of the housing market would greatly affect local fiscal revenue and make it very difficult for the governments to pay their debts.

According to the Ministry of Finance, in 2009 the nation pocketed 1.42 trillion yuan in land transfer revenue, about 3 percent of gross domestic product during that period.

Even when interest payments are not taken into account, it would take local governments four to five years to repay the 6 trillion yuan in loans.

"Revenue generated by selling land accounted for 45 percent of total local fiscal revenue last year. If the real estate market slumps and developers become hesitant about buying land, a crisis would erupt in local finances," said Tao Dong, chief analyst with UBS Securities in Asia.

As the firms were set up mainly to attract capital used in infrastructure and the construction of other public facilities, a major driving force of China's economic growth, the whole economy may be dragged down as crisis fans out, said Wang Zhihao, China research director of Standard Chartered Bank.

But some are more optimistic about the impact of the debts. "I don't believe the debts could pose much threat," said Jia, adding the biggest problem in local financing lies in the severe irregularities of borrowing.

He said the irregularities were reflected in the huge mismatch between the borrowed amount and the ability to repay in some regions. "But if we fight the fire only when the problems are already very evident, the social impact would be much greater."

In addition, the financing firms' executives, mainly government officials, often lack the necessary experience in management and risk prevention, added Wei.

China Daily

(China Daily 05/13/2010 page14)

[Jump to ]
Nation | Biz | Comment | World | Celebrity | Odds | Sports | Travel | Health
ChinaDaily Mobile News
m.chinadaily.com.cn
To subscribe to China Daily, call 010-64918763 or email to circu@chinadaily.com.cn
主站蜘蛛池模板: 真正免费一级毛片在线播放 | 国产老鸭窝毛片一区二区 | 99精品高清视频一区二区 | 手机在线精品视频每日更新 | 欧美一区二区在线观看视频 | 乱淫网站| 国产成人综合网在线播放 | 在线日韩三级 | 永久免费不卡在线观看黄网站 | 久久好看视频 | 国产精品高清全国免费观看 | 美国大毛片 | 特黄特色一级特色大片中文 | 女人把腿劈开让男人桶的网站 | 国产高清一国产免费软件 | 欧美激情亚洲 | 亚洲美女在线观看亚洲美女 | 青青视频国产依人在线 | 国产中文字幕免费观看 | 日韩中文字 | 亚洲精品国产免费 | 成人看片黄a毛片 | 欧美上床视频 | 香蕉福利久久福利久久香蕉 | 一区二区三区免费视频网站 | 欧美精品国产一区二区三区 | 成人亲子乱子伦视频 | 日韩精品一区二区三区在线观看l | 色射网| 男人天堂手机在线 | 综合亚洲欧美日韩一区二区 | 夜精品a一区二区三区 | 成年人网站免费看 | 91国在线高清视频 | 亚洲午夜片子大全精品 | 最新99国产成人精品视频免费 | 成年人网站黄 | 亚洲精品免费网站 | 国产精品欧美一区二区三区 | 久久精品国产只有精品6 | 看真人一一级毛片 |