Bank "black" threaten China's economic
Wenzhou City, Zhejiang Province (China)
DR / Flickr / Fabien Lelard
Mai Van
The bankrupt company more in China. One important reason often mentioned is the fact that they have to borrow money "black market" interest rates are too high, do not pay. Wenzhou is a good example. This phenomenon is reflected in Liberation investigative reporting of correspondent Philippe Grangereau, entitled: "The black bank of China threat".
Paper back to crisis unprecedented in Wenzhou, Zhejiang Province, is considered one of the most dynamic areas of China. Not pay the debt, thousands of small companies have closed. Both owners have hundreds of deformation, their secret hiding places or abroad. Three people have committed suicide jumping off a building, leaving the hefty debt.
The situation is very serious, Premier Wen Jiabao earlier this month 10/2011 had to consider, most measures to prevent the more serious crisis. From there, according to the article, Wenzhou leaders persuaded an employer is hiding in the U.S. return. Looking Wenzhou, China's news media began to wonder: this situation will spread to the rest of China or not?
Author of the article explains, Wenzhou is the first "capitalist tail grew back" in the early 80's, operating under the liberal economic model. Most of the 400,000 small and medium companies which had borrowed money from the bank - not legal in China, but still acceptable.
Not only in Wenzhou, 10% of loans in China is because thousands of black banks provide.
According to the report, from the beginning to now, these banks lent 177 billion yuan (20 billion euro), the private sector housing. The money equivalent to the bank credit that the state provides. This black money banks, in no small part from people's savings. Up to 80% of Wenzhou send their savings there, because higher interest than savings accounts of banks in the state.
Author of the article also explains that when the borrower can not pay the debt, the world is willing to lend to kidnap or murder to get their money back.
The bank is highly active black. On the one hand, because the central bank tightened credit for companies in the private sector lending drip while they expand their wallets for state companies, how much loan interest rates are very low .
According to the article, the credits that should have been put into production machinery, but in fact a black run on the bank because of more favorable interest rate of the system is very high black, from 30% to 80 % a year, so lucrative!
However, the above situation is disturbed. With extremely high interest rates that, in the context of global economic crisis, exports fell, wage workers increase, which adversely affect the company as in Wenzhou, they can not repay. Both a large array of Wenzhou economic collapse, the company operates most effectively bankrupt.
But Wenzhou can be only the first step. The article quoted an expert review, Mr. Lam Hoa Lap (Willy Wo-Lap Lam), Hong Kong University, said that in Wenzhou phenomenon is spreading to other places, especially in cities of Guangdong .
Debt problem in China is a major connection headaches for Beijing. Not only the company's debt as mentioned above, but also the debts of local government. Liberation debt figures highlight of the local China: 1,000 billion euros, according to Standard Chartered Bank, from 80% to 90% will never be repaid.
And for the first time the Chinese government allowed local governments to issue bonds, hoping to prevent the situation deteriorating. The paper also reiterated China's foreign reserves are currently at $ 3,197 billion (2,300 billion euros) as of May 6 / 2011.
