Excellent little farmer

Huaiqing City Finance has provided nearly 200 million yuan in loans to counties and cities for this purpose, which does not include the special loans of up to 300 million yuan borrowed by counties from the provincial finance.

However, these are not things that I need to pay attention to. Those were all things last year. Now what Chen Yinglu and He Zhaocheng need to discuss with me is about the issue of Huaiqing Credit Investment Company.

As the storm of comprehensive cleanup of rural non-financial institutions such as cooperative foundations hit, it inevitably affected some other non-financial institutions. It was under such circumstances that Huaiqing Credit Investment Company gradually surfaced. This is a real time bomb. If it is not eliminated in time, it may trigger an unpredictable social crisis.

"This means that the clean-up and rectification of this credit investment company has come to an end, and what we should do next is to find a way to liquidate the debts and raise funds to pay off the funds?"

I frowned and asked while listening to Gu Xiaopeng, the finance director who came in later, introduce the situation of the credit investment company.

Although I also went to the Municipal Finance Bureau to conduct research a few years ago, it did not involve the credit investment company. Obviously, the Finance Bureau team did not think this was a problem of the Finance Bureau, but of the entire Huaiqing Municipal Party Committee, Municipal Finance Bureau, etc. Government issues.

Although it is under the name of the Municipal Finance Bureau, the initial launch of this credit investment company was the proposal of the Finance and Trade Office of the Municipal Party Committee, and the Municipal Finance Bureau took the lead. The actual handling personnel came from various departments, not just the Finance Bureau.

"Well! When the central government issued a policy to rectify and merge the Alloy Association last year, the city felt that this credit investment company might also have problems, so it took precautions and cleaned up and rectified the credit investment company together. Unexpectedly, after this investigation, the scale of the credit investment company was not large enough. It’s small and has a lot of problems.”

Gu Xiaopeng was still the deputy director of the Municipal Finance Bureau at the time, and because he was sitting on the bench, the credit investment company did not have the chance to get involved, so he avoided being involved.

The credit investment company found a big hole after an investigation. In addition, the former director was involved in the Gu Yaohua incident. Although he finally avoided jail, he had no choice but to step down sadly.

"This is inevitable. The essence of this so-called credit investment company is similar to that of a rural cooperative foundation, that is, its scale and fund-raising objects and lending objects are slightly different. In a word, such a company lacks professional financial managers and supervision mechanisms. Investment companies that are easily influenced by administrative power will end up with a lot of bad debts that cannot be recovered, and their situation is probably worse than that of some alloys."

Of course, I know that this kind of credit company that sells dog meat has largely become a cash machine under the intervention of the administration and power of some leaders. It lends money to whomever it wants. Risk awareness, mortgage property rights, etc. , all put aside before the leader speaks.

Lack of supervision and review mechanisms, superposition of risks, and high interest rates on fund-raising or share capital, the hole will only get bigger and bigger. In the end, the only solution is to demolish the east wall and mend the west wall. If it really can’t survive, it will only The remaining outcome of the collapse is local government finances.

"Qingquan is right. I had objections to the business purpose of this credit investment company at the beginning, but the main leaders at the time turned a deaf ear to it, so that they dug such a big hole. They spent and squandered it, but they didn't We must let this party committee and government take the responsibility.”

He Zhaocheng also deeply hated this credit investment company. This credit investment company was completely insolvent. Its liabilities and assets were offset by a deficit of nearly 100 million, which was enough to severely deplete the city's finances.

"Now the assets and debts have basically been liquidated. We have done a preliminary sorting and it is estimated that the amount that is certain or promising to be recovered is about 60 million, while the amount that has become a dead debt is about 80 million, and there are Around 40 million belongs to the category that is relatively difficult, but with various efforts, it is possible to recover it." Gu Xiaopeng said to himself.

“According to the city’s commitment to fund-raising households last year, we will come up with a solution within one year of closing the credit investment company. The credit investment company was closed together with the Rural Cooperation Foundation at the end of June last year. At that time, the city’s main Our energy is mainly focused on the merger of the Rural Cooperative Foundation, concentrating on helping districts and counties complete the merger tasks, and the first round of payment of funds for the Alloy Society that failed to merge and was taken over by the government. Therefore, we are only actively investigating the issue of the credit investment company. After verifying the situation, no handling opinions have been issued yet. My opinion is still based on the liquidation method of the Alloy Association. After the liquidation of assets and capital verification is completed, resolution opinions must be issued as soon as possible, and every method must be used to clear the debts and raise funds for payment."

"Director Gu, how are you going to cash it out? Are you going to pay it off in three to five years like those liquidation alloy associations?" I asked.

"Mayor Ye, if not like that, how can our city's finances get so much money at once? Last year, in order to merge the counties and districts into the Alloy Association and pay the first round of funds for the liquidated Alloy Association, our city's finances were emptied. Now, It’s our turn to bleed money again. In addition, the city must consider preparations for the second round of repayment of funds for some districts and counties that are financially weak to prevent them from running into temporary problems and affecting social stability.

This year is probably the most difficult year for finances. Secretary Chen, Mayor He, Mayor Ye, you leaders are all here. I’ll put the ugly words in front of you. You have to prepare in advance, otherwise, you won’t be able to raise money at the last minute. Come on, that's going to be a big problem. "Gu Xiaopeng stared at the three of them and said calmly.

Chen Yinglu and He Zhaocheng couldn't help but sigh, it was really unlucky.

Gu Yaohua had messed up the officialdom in Huaiqing. Just straightening out the relationship was enough for the two of them to be in a state of distress. However, the central government was also trying to clean up and rectify the Alloy Society. Huaiqing was the area where the Alloy Society had the largest development. The backbone was suddenly broken and the funds were drained. Not only were the township and village enterprises now in trouble, but the county and township governments were also saddled with huge debts. Preliminary estimates showed that within five years, it would be impossible to get rid of the huge hole caused by cleaning up the alloy. .

In the past five years, all counties and districts in Huaiqing have had to tighten their belts and live a hard life, and things have not been easy in Huaiqing City. In addition to helping the counties and districts paper up holes, they also have a credit investment company on their butt. For such a big abscess, if you just squeeze it out, you will probably have to bleed again.

The four of them discussed financial issues for a while. When I investigated the Finance Bureau a few years ago, I learned that Huaiqing’s financial foundation is actually not weak, especially the industrial foundation there and the tax base is relatively strong. However, Alloy will clean up this. It almost broke the spinal cord of Huaiqing's industry. Except for the state-owned industry, collective enterprises and township enterprises, especially township enterprises, which were the pillars holding up half the sky, were suddenly in trouble.

In view of the debt problem of township enterprises in the alloy society, credit cooperatives have tightened the scale of lending to township enterprises. In addition, the economic contraction this year has made township enterprises even worse. It is no wonder that on the second day of the new year, the secretary, The mayor came to discuss this issue with a frown on his face, and he, the executive deputy mayor in charge of finance, naturally couldn't run away.

When I came out of the secretary's office, I realized that I had already carried a heavy burden on my shoulders.

The credit investment company must be in a lot of troubles, with 80 million in bad debts. How many interests are involved? The other 40 million is a tough one. If you are capable, have a strong temper, and have many methods, you may be able to get more back. If you are timid and more scrupulous, you may not be able to get back a penny. There are many tricks in the middle. Gone.

No wonder the matter at this credit investment company has been dragging on for half a year without any movement. How long does it take to just liquidate the assets and verify the capital? Professional accounting personnel can figure it out clearly in a month and come up with something by category. But in the past six months, how many things of practical value have the asset and capital verification leading group done?

The leader of the credit investment company's liquidation leadership team was named He Zhaocheng, but He Zhaocheng obviously didn't have much energy, or was unwilling to put his mind on it.

After half a year of delay, February of the new year is about to pass, and the deadline for payment processing in June is getting closer and closer. As the deputy team leader, Gu Xiaopeng is naturally a little busy. If there is no money to pay in June, it will be a disaster. For big things, how much responsibility will He Zhaocheng have when the time comes? I'm afraid that in the end the focus will fall on him, Gu Xiaopeng.

Now that an executive deputy team leader has been added, it means that the most difficult work of the credit investment company in the later period will be taken care of by me as the executive deputy team leader. This makes Gu Xiaopeng breath a big sigh of relief.

"Gu Bureau, please come to my office. In addition, call your financial leader who is mainly responsible for the credit investment company. I will ask the secretary to inform the person in charge of this work in the city government."

While I was thinking about the mess of this credit investment company, I was also thinking about how to deal with the current mess in Huaiqing's finances.