The Central Bank Denied Local Debt Amounted To 14 Trillion &Nbsp, And Said The Risk Of Financing Loans Was Controllable.

After the Audit Office stressed that the data of local government debt was reliable, the central bank also responded to some local institutions and scholars' speculation that the local government debt was 14 trillion yuan before the eve of the central bank's Eve. Financing platform The risk of loan is controllable.

Both the calculation method and the conclusion are wrong.

In the June central bank's report, the market participants said that "the proportion of loans made by various government financing platforms to local RMB loans is basically no more than 30%". At the end of last year, the balance of loans in the national yuan was multiplied by 30% by 47 trillion, and the total amount of loans was 14 trillion. The central bank pointed out that this calculation method and conclusion are wrong.

The central bank explained that the proportion of loans made by various government financing platforms to local loans is high and low, even though the highest proportion is not more than 30%. Therefore, 30% can not be used as the proportion of the whole country. In addition, the total amount of local loan balances is not equal to the total number of loans in the country. The former does not include loans directly issued by the head office of the national commercial banks and other departments, which is less than 47 trillion of the national loan balance. Therefore, it is not possible to use the total number of loans in the whole country as the total amount of the local loan balances.

Local debt risk control

"The overall risk of local government financing platform loans is controllable." The central bank believes that local government loans are mainly invested in projects with economic and social benefits. In recent years, industrialization and urbanization have accelerated development, and quite a few projects can generate stable and sufficient cash flow income, which can completely cover the debt principal and interest.

However, Wang Zhihao, chief economist of Standard Chartered Bank, said that most of the local financing platform loans were one-time repayment loans at the end of the term, with a period of 3 to 5 years. But there will be pressure to pay back in the next year. The interest rate of local debt is about 6%, much higher than that of the Treasury. Government debt 2% paid.

At the end of last month, the Audit Commission disclosed that the size of China's local debt reached 10 trillion and 700 billion yuan at the end of last year, but Moodie, an international rating agency, said China underestimated the size of about 3 trillion and 500 billion local debt.

Local debt issuance is the first sign of circulation.

Washington (reporter Li Lei) 11 days of the Ministry of Finance issued the first batch of local government bonds, 3 year bonds appear since the 2010 local bond issue since the issuance of the first time.

The two phase local bonds issued are 5 year fixed rate debt and 3 year fixed rate debt, and the 3 year coupon rate exceeds 5 years.

Debon Securities chief Strategy analysis Shi Lei said that the high flow rate and high interest rates indicate that people lack confidence in the local financing platform. Guo Tianyong, a banking research center at Central University of Finance and Economics, said market funds were tight and worries about the risks of local financing platforms led to insufficient subscriptions.