The debt is borne by the joint venture company, not by the government. After the joint venture company has been in operation for several years, the ownership will be handed over to the government after the investment is recovered and part of the income is obtained.
Analysis on the way and motivation of local government's capital injection.
After the tax-sharing reform, the financial and administrative rights of the central and local governments do not match, resulting in a large gap in investment and financing funds of local governments. In order to make up for this part of the funding gap, the city investment company came into being. According to Guo Fa [2065 438+00] 19, local government financing platform refers to an economic entity with independent legal personality, which is established by local government and its departments and institutions through financial allocation or injection of assets such as land and equity.
Since the main purpose of the establishment of the City Investment Company is to raise funds for local economic and social development through debt financing, in order to expand its financing capacity, the local government provides asset support for the City Investment Company by injecting monetary funds, real estate, state-owned enterprise equity, land (including land reserve, land allocation and land transfer) and public welfare assets such as schools, hospitals and parks.
Through the above capital injection:
On the one hand, it can quickly reduce the asset-liability ratio and avoid the red line requirement that the debt burden of some bank loans of city investment companies should not be higher than 70%; On the other hand, the injected assets can be used for the mortgage loan of the city investment company, further enhancing the financing ability of the city investment company.
The reality is that under the background of urbanization and "GDP competition", local governments need to obtain a lot of funds with the help of city investment companies. However, limited financial resources make it difficult for its disposable high-value assets such as monetary fund, real estate and equity to meet the distribution needs. At the same time, local governments hold a large number of reserve land and public welfare assets, and local governments are more inclined to inject such assets into city investment companies.
Therefore, most city investment companies are established by local governments with a small amount of financial allocation and relatively large-scale land assets injection, and then they get the reserved land and public welfare assets injected by the government to continuously expand the asset scale.
However, the reserved land or public welfare assets themselves do not have the corresponding value. In essence, the local government's behavior of increasing its asset scale and reducing its debt burden before financing the city investment company is the excessive debt of the local government.