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Rural debt scale, structure, risks and effects analysis

Author: SongHongYuan From: www.yourpaper.net Posted: 2007-11-19 15:11:21 Read:
[Keyword] structure of the size of the debt debt debt risk balance effect
[Abstract] This article is based on field survey data, from the size of the debt, the creditor structure, purpose and structure, term structure and the level of interest rates and other aspects of rural debt problem description, and learn from foreign debt analysis indicators to judge the risk profile of the rural debt. The basic conclusion: large-scale, fast growth of rural debt; formal financial institutions is the main creditor of the rural debt, but gradually increase the proportion of private creditors; rural debt versatile, run enterprises and public infrastructure is the main content; mostly rural borrowers short-term; rural debt risk is increasing; moderate debt conducive to rural development, but there are adverse effects of excessive debt.

In 2003, we went to A the Township and E village in Heilongjiang Province, Hebei Province B Township and F Village, town of Jiangsu Province C and G Village and Jiangxi Province D Township and other places, and carried out in-depth research on rural debt issues. Typical and representative of the country as a whole, these places. We take the debtor's report in the survey, a detailed record of the occurrence and development process of rural debt, mastered informative first-hand information.
First, the size of the debt
Table 1 survey the township calendar year debt balance (million)

Source: According to the field survey data collation
Survey of four towns and three villages there are a large debt. As can be seen from Table 1, since 1996, the debt growth rate of four townships soon, up to 5.457 million yuan by the end of 2001, the average debt balance. B Township 6 years, the size of the debt grew three times the average annual growth rate of 20.1%; Township A growth of 5.4 times the average annual growth rate of 32.4%; the C town grew 11.6 times the average annual growth rate of 50.5%. Table 2 shows that from 1990 - 2002, total borrowings of F Village and G village of more than 100 million. By the end of 2002, the two villages loan balance of 304,000 yuan and 165,000 yuan, respectively, if coupled with payables, the size of the debt will be greater.
The survey showed that the purposes of the debt had a greater impact on the size of the debt. Office venues, large-scale infrastructure construction, as well as the need to set up enterprises large amount of money to set up these projects will generally sharp increase in the size of the village liabilities. C Town, 1999 --- reasons for the dramatic increase in the size of the debt in 2002 is that the demolition and construction of the industrial park, A township reasons for the sharp increase in the size of the debt in 1999 was the construction of a magnificent township government office building. In general, the view from the use of the developed areas of the township's liabilities is mainly used for the establishment of enterprises, larger public investment products, such as the C town all the debt used to organize business and industrial park construction, the amount of the liabilities. Most of the less developed areas of rural debt for wages, fees and taxes, the task, the amount of the liabilities and therefore the more developed regions.
Table 2 survey the village calendar year borrowings scale (million)

Source: According to the field survey data collation
debt structure
(A) the creditor structure
Main rural debt claims, including agricultural banks, rural credit cooperatives and other formal financial institutions, rural cooperative foundations and other non-formal financial organizations, foreign governments and international financial organizations, the higher the financial unit and private (including individual industrial and commercial households, township cadres) and so on. Table 3 constitute the end of 2001, the creditors of the sample townships table. Village 1990 - 2001 Table 4 for the investigation of the borrower's creditors constitute the table.
Table 3 township government debt creditors constitute (million,%)

Source: According to the field survey data collation
Table 4 survey village borrower creditors Composition (%)

Source: According to the field survey data collation
The material of the situation and we have elsewhere formal financial institutions is the most important in the rural debt creditors, agricultural banks and rural credit cooperatives, rural grassroots government or organization fund suppliers.
Township government, the county finance is also an important source of the borrowed funds. Including the two main forms: one is used to compensate for the lack of budgetary funds or deal with emergencies, such as D Township liquidation borrowers, because rural cooperative foundations are banned by the township government finances, the debt must reveal all the details to the county finance lending county finance the first pad to take it out, and then the next funding year after year inside deducted 3% per annum; project loan funds to go along with the project, such as B rural forestry development loans.
Informal financial organizations mainly rural cooperative foundations. 1996 - 2002 B Township, accumulated from the Foundation for a loan of 3.049 million yuan, for wages, construction of office buildings, and fees and taxes, task. After the mid-1990s, private to become a very important rural lending channel. Private mainly refers to the village cadres, individual industrial and commercial households. Rural borrowings and payables two forms of private debt, the borrower's fund-raising, including a variety of names, temporary working capital borrowings, payables occurred arrears of wages and construction models.
Regional economic development level of creditor structure had a greater impact. The funds are relatively abundant formal financial markets of the developed areas and informal financial markets, financial institutions and private has become the main creditor of the liabilities. For the purposes of the less developed regions, in addition to the formal financial institutions and private, the higher the financial as well as a variety of non-formal financial organizations are also important creditors.
In fact, the rural debt is undergoing a major shift by the public debt to private creditors. Adjustment of agricultural structure, the development of township enterprises, small towns, and rural building in the early 1990s, mainly from the formal financial institutions to obtain financing, the main channel of the rural lending is the Agricultural Bank of China and credit cooperatives, basically has no units and personal debt. Reform of the financial system in 1993, in fact, speed up the process of the financial sector of the market, the capital market improved, does not have the market competitiveness of the agricultural and rural marginalized, rural access to formal financial institutions loans declined sharply. After 1998, the majority of rural, village-level organizations is almost impossible to obtain loans from financial institutions. Meanwhile, state financial support for agriculture is not only not improved, but declined. "Ninth Five-Year Plan" period, for example, the national fiscal expenditure for agriculture accounts for the financial expenditure in 1996 was 8.82%, and 8.30% in 1997, 10.69% in 1998, 8.23% in 1999, 2000, 7.75% . Where in 1998 the proportion has increased because of the devastating floods this year. Five years, the state revenue has increased from 740 billion yuan in 1996 to 1.6386 trillion yuan in 2000, an increase of 121%; fiscal expenditure on agriculture only increased from 700 billion yuan to 123.1 billion yuan, an increase of only 75 %. Therefore, rural finance had to rely mainly by private lending markets.
(B) Debt purpose structure
Rural borrowings mainly used to set up rural collective enterprises, comprehensive agricultural development, engaged in the construction of public infrastructure and office facilities, wages and fees and taxes, task. Table 5 shows the sample townships cumulative incidence of the use of debt structure by the end of 2001.
As can be seen from Table 5, used to set up corporate debt accounted for 35.3% of the total debt balance of the 2001 D Township. According to our survey, from C occurred in the town since 1991 loan a pen directly for the establishment of enterprises, 3 pen used for the construction of industrial park, is also related to the establishment of enterprises. The survey also showed that of other regions, the development of rural collective enterprises and other productive spending is a major cause of the formation of rural debt. Inner Mongolia Autonomous Region and village levels 1/3 of the debt for productive expenditure (cloud Dekui, 2000), 50 percent of Henan's rural debt in setting up the process of rural collective enterprises (Henan Province Department of Finance, 2001). The early 1990s, the state and local government introduced a number of laws and regulations to set up a rural collective enterprises, encourage and even force the grass-roots government to promote the development of rural collective enterprises. Collective enterprises have been forced under the pressure of the higher levels of government, unconventional development. Due to the lack of its own funds, funds of collective enterprises have a large part from the ABC, credit unions and other financial institutions, loans and financial concessional funding. D Township rural collective enterprises set up primarily to build a hydropower station, with a total investment of 3.379 million yuan, of which liabilities of 2.139 million yuan, accounting for 1/3 of the total balance of its debt.
Comprehensive agricultural development is around the efficiency of agricultural production and to carry out the construction, Xingguo County, to engage in the so-called "the Santonian changed and optimizing planting structure engineering. Comprehensive agricultural development capital loans from the Agricultural Bank of China, credit unions and other financial institutions, IFAD and rural cooperative foundations and other non-formal financial organizations. These funds usually unified those loans by the township government, then lending to the village collective organizations and farmers, or to vouch for them. Comprehensive agricultural development investment in major grain producing areas are generally large, occupies a large proportion of its total debt, such as D Township, the such purposes liabilities accounted for 1/3 strong. However, under the influence of urban bias, the governments of developing countries on the World Bank and other international organizations to increase investment in rural infrastructure requirements, often perfunctory surface just to get a loan or assistance, and not carried out. "(Lin Yifu , 2002), the grassroots government action logic is also true, to solve the shortage of funds incentives to stimulate grass-roots government borrowing to foreign capital. D Township to the International Agricultural Development Project loan of 2.187 million yuan, when lending is on behalf of the comprehensive agricultural development, but the actual use of the borrower and not just agricultural development, which makes comprehensive agricultural development greatly reduced.
Historical investigation showed that the use of debt, before the mid-1990s, the village liabilities is mainly used for productive investment, financing debt from debt manifestations; After the mid-1990s, in the majority of the Midwest areas, to complete the task of higher levels of government under the taxes and wages become a heavy burden on the township, there has been a fundamental shift in the use of debt, happened liabilities by the productive to the unproductive liabilities or financing liabilities to the deficit liabilities fundamental change. Since the vast majority of rural collective enterprises have ceased production, closure or restructuring, the government exit from the field of production of competitive, steering by providing a favorable investment environment to attract external capital to promote the development of the individual and private enterprises, the liabilities of the eastern part of the productive investment towards infrastructure.
Table 5 uses of township government debt structure (million,%)
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