319<P March 6 style="TEXT-INDENT: 2em">, the CPPCC National Committee held in the Great Hall of the theme of "progress while maintaining stability, promoting the economic development of social science" press conference, invited members of the CPPCC National Committee, Li Yining, Xu Shanda, Mr Chen, Ma Xiuhong, Mr Yang, Ren Hongbin
Chanel Outlet around the issue of economic development to answer the Chinese and foreign reporters. Mr Yang, a member of the CPPCC National Committee, China Industrial and Commercial Bank, said in answer to a reporters question of the CPPCC newspaper, macro and micro data indicate that the risk of local financing platform is controllable, and basic safety. </P> <P style="TEXT-INDENT: 2em"> <STRONG> [CPPCC newspaper reporter] </STRONG> would like to ask Mr Yang member of a problem, all these years to local government debt have been expanding, causing people risk of local financing platform concerns. Will the Young Members, do you think of this platform there is no risk? It is the quality of bank assets will bring what kind of impact? Thank you. </P> <P style="TEXT-INDENT: 2em"> <STRONG> [CPPCC National Committee, the Industrial and Commercial Bank of China President Yang Kaisheng] </STRONG> Thanks for your question. If we simply answer your question, it is actually a word in his government work report Premier Wen Jiabao yesterday on the line, Premier Wen Jiabao said: At present, Chinas government debt level is controllable and safe. Prime Minister of this sentence I think the answer is very clear, but I want to say is, I think this sentence is indeed data can support. </P> <P style="TEXT-INDENT: 2em"> far as I know, serious audit by the Audit Commission, the national local government total debt level is about 10.7 trillion; At present, about the balance of government bonds issued by Chinas central financial 6.8 trillion, the two together, and finally the formation of the 17.5 trillion of Chinas overall government debt, 17.5 trillion is a concept? Accounting for the proportion of Chinas GDP is about 43%. We see this figure we can know, much lower than the level of some countries in the world. If we look at those countries of the European debt crisis, not than they are more than 100%. We can look at the total GDP in general and our country in the same order of magnitude, such as Germany and Japan, the Japanese government debt accounted for 180 percent of GDP, and Germany in the European debt crisis in relatively good, the problem point, the German government debt to GDP accounted for 83.2% and 43.5% in our country. So I think the prime minister said the overall level is controllable, safe, and this statement is to set up. </P> <P style="TEXT-INDENT: 2em"> In addition to this figure we can dynamically take a look at Chinas fiscal revenue in 2056, our compound
Chanel Bags annual growth rate of over 22%, so these two figures
Chanel HANDBags we can conclude that: the Governments solvency is adequate, so that it is safe. </P> <P style="TEXT-INDENT: 2em"> 10.7 trillion is not all local governments cents out of it? Fact, local government debt we all know to take a lot of platforms, many companies,
Chanel Outlet and now we need to further look at these companies, the project itself does not produce the cash flow of income, if they have cash flow sufficient income to repay debt, and finally you do not need local government debt. If it is income not enough local government debt service is necessary, whether it is secured, or directly offered to build the platform or the local government have the responsibility of the </P> <P style="TEXT-INDENT: 2em"> Take ICBC understanding of the situation, the local government platform of ICBC loans, these platforms, these projects generate cash flow and income 100 can cover the debt accounted for 90.4 percent of ICBC loans to local government financing, which means that 90.4% do not require local governments money, the project itself is a charge, such as highway, water conservancy, power projects can produce revenue would account for about 90.4% of the overall loan. These are the regulatory case by case audit, and regulatory authorities to check the ICBC loan of 90.4% can be repaid, as well as 6.4% of the project can basically cover the cash flow generated by this project, an accurate quantitative meaning cash flow income accounted for more than 70 percent of the debt levels less than 100% is called the basic coverage, the two together more than 97% belong to can
Nike Air Max cover or basic coverage. The rest of the half-coverage or the government will eventually have to assume the debt obligations. Overall level of debt accounted for only 40% of GDP, far below the world average, and there is sufficient solvency, more importantly, the real debt service accounted for only 10.7 trillion accounted for only about 4%, so the Prime Minister said a controlled, secure this argument is the data support. </P> <P style="TEXT-INDENT: 2em"> this
Chanel Bags matter to engage in so many years, many local government financing platform seventies and eighties there may be built after 2008 in order to cope with the international financial crisis impact more, the loan is more concentrated, so far how the actual quality of
Air Max the loan? I can give you data of ICBC, ICBC to the end of 2011, to local government financing platform for non-performing loan rate is 0.73%. This is a concept?
Chanel Bags I can honestly tell my friends: the late 2011 ICBC overall non-performing loan rate is 0.94%, which is 0.73 percent non-performing rate of loans to local government financing platform, is lower than the level of total non-performing loan rate. Therefore, both from the macro data, or from micro data, we can see that the risk of local government financing platform so far is controllable, it is basic safety. This is our basic judgment and the judgment of the Prime Minister in his government work report is basically the same, thank you for your question. </P> <P style="TEXT-INDENT: 2em"> (Xinhua / Chinese government) </P>
