Key Projects For Railway Construction Will Be Supported By Bank Financing.

In view of the shortage of funds for railway construction, reporters learned yesterday from relevant sources that the Ministry of Railways and relevant departments have reached an agreement, and railway key projects will receive financial support from financial institutions.

This is another policy support of the state for railway construction projects following the half income tax policy on interest income of railway construction bonds.

Capital chain tension

along with Central Bank Tighten up the money supply, and the railway construction that relies heavily on bank loans has been hit by construction funds.

According to media reports, the previous sample survey of China railway network showed that only 30% of normal construction works were completed this year, and 70% of them were shut down, semi shutdown and slow progress. In addition, half of the wages of railway construction front-line workers were not paid on time.

In response to the impact of the financial crisis, the state launched the "four trillion" investment plan, in which railway investment based infrastructure investment projects started in 2008 and 2009. To this year, these projects are in the rush hour of construction and demand for capital is very large. But with the tightening of bank loans, railway construction funds are in place.

"Difficulties in funding will mainly bring about two problems. First, the construction cost will be increased after the closure of works. On the other hand, the construction workers of infrastructure construction are mostly migrant workers. If the funds are not in place, the construction enterprises may be in arrears with the wages of workers." A railway ministry official told reporters.

On the one hand, this year, the Ministry of Railways halted the new projects, on the other hand, capital The impact of tension on investment progress has been reduced by the Ministry of Railways this year.

According to the data released by the Ministry of railways, the Ministry of Railways fixed assets investment in the first 8 months of this year was 357 billion 720 million yuan, a decrease of 46 billion 680 million yuan compared with the same period last year, a decrease of 11.5% over the same period last year. According to the single month data, the fixed assets investment of the Ministry of Railways was 58 billion 100 million yuan, 44 billion 300 million yuan and 35 billion 300 million yuan from 6 to August this year.

Financial problems will ease.

On the 10 th of this month, the Ministry of Finance issued the notice on the policy of enterprise income tax on interest income from railway construction. The notice said that the interest income earned by Chinese railway construction bonds holding 2011-2013 years of issuance will be reduced by half of the enterprise income tax.

This policy is for the next railway ministry to issue Railway Bonds escort to ease the difficulty of issuing Railway Bonds in the near future.

On the 12 day, the Ministry of Railways issued a 20 billion yuan RMB fixed rate corporate debt in the inter-bank bond market. The 7 and 20 year varieties were half and the bid rates were 5.59% and 6% respectively. The subscription times were 2.84 and 1.67 times respectively, and the subscription was more active.

The winning rate is lower than market expectations. Even considering the impact of a half interest tax, the winning rate of the railway debt previously issued by a number of agencies is above 5.8% and 6.25% respectively.

"Now many critics in the market think that the interest rate of Railway Bonds is relatively high because of the poor financial data of the Ministry of railways, which is not true. Under the influence of the big environment, bond interest rates have generally increased. These people told reporters.

Constrained by bank loan restrictions, compared with previous years, this year, the Ministry of Railways is more inclined to bond financing in terms of financing.

This year, the Ministry of Railways has issued three phase 10 billion, 15 billion and 20 billion short selling securities in the bond market. The first phase is 20 billion of the central bank, the first one is 15 billion, the second is 20 billion. In addition, the 20 billion railway construction bond issued has reached 160 billion, which is close to half of the total investment this year.

"The State Council is coordinating various departments to support the rational construction progress of railway construction." These people told reporters that the financial institutions have made it clear that they will lend loans to railway construction projects, which will ease the pressure on Railway funds.