Volume 12 The Waves Stop the Flying Boat Section 138 Local Debt
In fact, Lu Weimin also knew that what Song Zhenbang did in Xiliang was actually very similar to what he was doing in Songzhou now. They used the government to set up platform companies, and then the platform companies used loans and financing, and then carried out transportation infrastructure.
, using infrastructure to boost the economy, it can be said that Xiliang has gone to the forefront and is considered a master.
However, the urban economy of Xiliang is far from comparable to that of Songzhou. Songzhou established the Urban Construction and Development Department and the Communications Construction and Development Department as a platform, mainly based on the large tracts of land in Songzhou urban area, especially those left over after the restructuring of several major state-owned enterprises.
The land is used as capital, and the urban area of Xiliang is inherently narrow, and the urban population is only about 100,000, which is only one-sixth compared to the million urban population of Songzhou, and the land price is not comparable to that of Songzhou.
So in fact, the platform company under the Xiliang District Administrative Office - Xiliang City Construction Development Co., Ltd. has long been heavily in debt. If it were not for the financial support, I am afraid that several major banks would have come to sue, but several urban credit cooperatives
However, the Rural Credit Cooperatives and Rural Credit Cooperatives were greatly dragged down. It can be said that the reason why Guangli City Credit Cooperative and Limin City Credit Cooperative were in such a mess because of problems with several loans was because they and Xiliang City Construction Development Co., Ltd. occupied a large area.
The loan has a lot to do with it.
The problem of local financing debt has always been a double-edged sword. If used well, it can effectively promote local economic development and have the effect of taking the lead. If used poorly, it will become a huge burden for local development.
I often see discussions about local debt on the Internet, many of which are negative about the expansion of local debt. But only when you sit in this position, you will find that if you do not use this method to obtain your own development,
That means it's difficult to move forward.
Only by appropriately using debt financing to accelerate local economic development, cultivate a good investment environment, promote rapid economic growth and increase tax revenue will you be able to fill this deep hole.
Lu Weimin does not agree that local debt is a huge pit. It depends on the timing and extent of local debt borrowing, and whether it is necessary for you to borrow heavily.
For example, in the previous life, when the four trillion yuan was released after 2008, coupled with the huge investment that stirred up local governments in various places, it was obviously hot-headed and did not have a deep understanding of the economic development situation and whether it was necessary in this situation.
Such a large investment stimulus is also due to the fact that the economic structure itself has many chronic diseases, and these investments cannot be used for a while, which leads to many deviations in investment, which leads to the emergence of many problems.
Song Zhenbang borrowed heavily for infrastructure construction in Xiliang. This issue was criticized even in the province. However, the changes it brought to Xiliang were huge and real. In the end, the province recognized him.
measures.
The reason why Changxi Tungsten Industry was able to be established and launched so smoothly has a lot to do with the relatively complete secondary road network built in the counties in the Xiliang area. Otherwise, in an area that is inaccessible by road, no matter how rich the resources are, you
We also have to consider how to transport the mined mineral products.
Lu Weimin and Hua Youlan talked about Xiliang's investment promotion strategy. He believed that Song Zhenbang had a good vision and good intentions, but he borrowed more than 1 billion in debt to start infrastructure construction in just three years, and in
Under the circumstances at that time, it was indeed difficult for Xiliang to attract more foreign capital, so it is understandable.
But it is understandable that it does not mean that his approach is completely correct. Such a huge debt suddenly strained Xiliang's finances and fell into a debt quagmire. Every year, he took great pains to raise the payment of principal and interest, which also made Xiliang local government insecure.
In the later period, the room for maneuver was greatly reduced, and only then did the subsequent bank runs break out.
However, we must say that Song Zhenbang chose the right time. The domestic economy will usher in a period of rapid development from 1998 onwards. This is the first stage of China's best ten-year golden growth period. Therefore, even with such a large debt,
However, Xiliang, whose infrastructure has been comprehensively improved, has abundant resources. As long as it attracts investment and cultivates industries properly, Xiliang can truly become a phoenix and be reborn after this period of time.
In fact, in the previous life, Xiliang suffered heavy losses in the 1999 bank run, but later the provincial government intervened and finally allowed Xiliang to survive this difficulty. Finally, Xiliang developed rapidly after 2001. Lu Weimin remembered the Chinese and Western
Liang has become an important industrial city in Changjiang Province in 2012, second only to Changzhou, Kunhu and Qingxi, surpassing another important industrial city Guiping. Of course, Xiliang has industrial pollution and environmental damage caused by mining.
It has also been subject to fierce criticism along with the development of Xiliang, which has also become a hidden pain for successive party committees and governments of Xiliang.
Song Zhenbang has escaped this disaster. He is no longer the Secretary of the Xiliang District Committee but the Secretary of the Kunhu Municipal Committee. So if anything goes wrong in Xiliang, he cannot be hit with a stick, but as the big bosses in the province, they will not
Silly, of course you know the causes and consequences here. Of course, the main responsibility must be borne by your current prefectural committee administration office.
Lu Weimin's worry is not unreasonable. Xiliang is currently quarreling with him, but when it comes time to inject capital to establish its establishment, it is still unknown whether the Xiliang District Administrative Office can get the money. According to the currently agreed upon registered capital of ten
100 million yuan, Far East Development invested 700 million yuan, accounting for 70% of the shares, Songzhou Investment Company under the Songzhou Municipal Government invested 150 million yuan, accounting for 15% of the shares, and Provincial Expressway Development Co., Ltd. invested
100 million yuan for 10% of the shares, and Xiliang Construction Investment Co., Ltd. under the Xiliang District Administration invested 50 million yuan for 5% of the shares.
The focus of the dispute is that Xiliang hopes to invest 80 million for 10% of the shares. The main reason is that Xiliang may spend more on the construction of this highway and the coordination of demolition, which also caused dissatisfaction on the part of Songzhou.
In fact, Lu Weimin really wants to ask if you can come up with the 50 million yuan. If they can come up with it right away, he is willing to persuade Far East Development to make some concessions. Of course, he can't say this now. It would be too hurtful.
, but Lu Weimin is very likely that the Xiliang area will ask for a delay in investment, and a quarrel will inevitably happen. At that time, it will not be him who will be the main force, but Far East Development and Provincial Expressway Development Co., Ltd.
Agreed.
Let's see, maybe Xiliang can survive this hurdle.
November passed by in a flash, and as Luwei Min expected, when Jiangnan Expressway Construction and Development Co., Ltd. was established on December 18, the Xiliang area was unable to pay 80 million yuan in equity capital, or even come up with 50 million yuan.
They could only scrape together 20 million yuan, and Lu Weimin knew that this was probably the maximum limit Xiliang could get.
After emergency consultations, the company's share composition was still based on the proportion initially agreed upon. However, taking into account the specific difficulties in the Xiliang area, the investment amount of Xiliang was reduced to 40 million yuan, of which 20 million yuan was temporarily funded by Far East Development.
It was not until the financial difficulties eased that Far East Development was repaid, and Far East Development's investment rose to RMB 710 million.
The fact is that before the establishment of the company, the preliminary preparations for the Western Song Expressway were already in full swing, especially in land acquisition and demolition. Both Songzhou and Xiliang showed quite high efficiency. In fact, the Western Song Expressway in Songzhou
The road conditions are not complicated, and the terrain is mainly plain. However, it is more troublesome in Xiliang. The terrain is mainly deep hills and shallow hills, and the cost of road construction will also rise significantly. This is why Xiliang is eager to build this road to connect them to the outside.
The main reason for the road.
"Mayor Lu, Mr. Ma is already here and waiting for you in the reception room." Gu Ziming opened the door and whispered.
"No, please invite him to my office." Lu Weimin rubbed his temples and couldn't help but want to smile bitterly.
It’s not that I have any opinion about Ma Juncheng. This kind of official son is at least many times better than dandies like Wang Xiaotao and Gou Yansheng. Regardless of whether he uses his father’s influence to do anything, at least he knows to follow the rules.
They will not cross the bottom line. This is probably the reason why these officials' children are so good at doing business. If they really want to trample on the principles unscrupulously, this kind of business will probably be stopped right away, or even impossible to continue.
It's just that Jiangnan Expressway was built here, and Ma Juncheng contacted him. Of course, this is also the reason why Songzhou's urban construction has begun.
"Brother Lu." Ma Juncheng's face was full of joy. Following him were an eye-catching man in his thirties and a pretty girl in her twenties. As soon as they walked in and saw Lu Weimin, they walked up to shake hands with a smile.
"Haha, Juncheng, sit down, it's rare for you to come to our Songzhou." Lu Weimin motioned for Gu Ziming to sit down as well, and the office staff brought tea in.
"Hehe, Brother Lu, you are a busy man. How can I bother you so often? I came here twice last month and once this month. I have contacted Secretary Gu before. Once you went to Xiliang and you...
You were down there twice, and I didn’t know when you would come back, so I had no choice but to give it up." Ma Juncheng nodded with a graceful smile, "Let me introduce to you, this is An Zilin, the business director of our company.
Sir, this is Miss Tong Lin, director of our company’s public relations department.”
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