The strict control by the central issue for platform

36 local governments at the corresponding level of government debt, according to the results of the audit from 2011 to 2012, the local government is selectived examination through trust loan, financing lease and sale rent 109.01 billion yuan, and the way of issuing financial products such as financing through BT and mat endowment construction way form the government debt of 106.018 billion yuan, an illegal fund-raising 3.059 billion yuan, total 218.087 billion yuan, accounting for the region two years 15.82% of carbon steel api 5l grade B tube the total amount of raising new debt.

These new ways of debt financing cost is generally higher than the same period bank loans interest rates, such as BT financing at an annual rate of up to 20%, raising interest rate up to 17.5%. RuGaoShi according to media reports, jiangsu province economic and technological development zone, since 2008, has four times to collect, to the public commitment to the interest of up to 14%. Experts said the concealment of the financing way is strong, not easy oversight, and the financing cost is high, contains the new risks, is the focus of the financial risk prevention.

Contrast 36 areas at the end of 2010 and 2010 at the end of the debt balance as you can see, the bank loan proportion fell by 5.6%, local bonds rose 62.32%, other unit and individual growth of 125.26%. According to expert introduction, "other units and individuals" rise so high that is 90 degree pipe fitting long radius elbow mainly because the new way of financing to expand quickly.
Central university of finance and economics of the institute of finance and economics Wang Yongjun tells a reporter, countries tend to be more strict management of the platform's debt, which is included in the audit, including financial leasing, financing, such as repurchase (BT) background of the new way of borrowing.
Debt credit analysts point out that in April 2013, the China banking regulatory commission issued a "about strengthening local government financing platform 2013 loan risk guidance", insist on the principle of total amount control, the local government financing platform continue to implement strict credit policy, not the new loan financing platform. As countries to strengthen management of local government debt and Banks to local governments and the financing platform company credit tightening, a disguised form of debt financing is becoming more prominent.

"For the local government, on the one hand, platform has borrowed a lot of debt, and the debt into repayment peak; on the other hand, the strict control by the central issue for platform, to continue using the platform of local government financing has been more and more difficult." Wang Yongjun told reporters that "the local government debt financing platform into the repayment peak since last year, the next two to three years of a hot rolled seamless steel pipe slower growth rate. However, local governments need to continue financing, some local governments still rely on new debt to repay existing debts, so the faster growth rate may be including financing leasing, financing, repurchase (BT) and mat endowment, deferred payment or default of construction, a new way of borrowing."