There are four characteristics:
1. The borrowers are all state-owned enterprises. As an operating carrier, the government "bridges" loans from banks and manages a municipal project on behalf of the government. Generally, from the start-up capital to the company's development resources, it needs the support of the authorities and has a strong government will.
2. The purpose of the project loan is mostly around the municipal construction, mainly to improve the supporting infrastructure, in order to build a nest to attract phoenix and win in the fierce competition for attracting investment in cities. For example, the purpose of road construction is to relieve road traffic pressure and improve traffic intensity; Create a hardware environment for introducing foreign capital into industrial parks.
3. According to whether the use of loan projects generates income sources, it can be divided into two modes: one is that investment projects do not generate income and rely entirely on finance; The other is to build industrial parks while building roads, green belts and other supporting facilities, and lease them to other manufacturers to generate rental income and management fees.
4. Because these projects produce no or limited income, or the borrower's financial revenue and expenditure is dominated by the government, ordinary banks take the borrower's direct income as the first repayment source in project risk assessment, but at the same time they still supplement the government's budget expenditure as repayment guarantee, and let the government issue a loan commitment letter as a bank's risk prevention measure, which is called "financial bottom".