Rebirth: Super Banking System-Chapter 494 - 404: Corporate Loan Business (Happy New Year’s Day!)_1
Chapter 494: Chapter 404: Corporate Loan Business (Happy New Year’s Day!)_1
Wei Hao looked at the sentence over and over again, obviously excited.
Yes.
The text indeed suggested that he could borrow Asian dollars to purchase these industrial machines. Upon realizing this, Wei Hao finally felt that the Myanmar Bank has begun to exhibit the real power of banking - providing financing channels.
The establishment of the Myanmar Bank was no more than a week ago.
Just over half, and still two days left.
The overall business was limited to deposits, withdrawals, card payments, transfers, and currency exchange. It was fairly primitive and crude, and no other financial services had been launched at all. Fixed-term deposits had not yet been implemented, let alone the idea of external loans.
Now, as the economy within the territory began to gradually prosper and the businessmen’s demand for capital increased, a private lending market had even popped up due to the absence of formal financing channels. The interest rate was not high, about 1.5 percent per month and only 18 percent per annum. They were quite cheap, practically giveaway prices for loans. However, it wasn’t that they didn’t want to hike the interest rates, but rather that doing so would trigger arrests by the security team.
This was the reasonable private lending interest rate Tan Qing wanted to maintain before the establishment of the bank. Since there was no bank, they could only stabilize private loans. As for the dream of 1 percent monthly interest, since others did not have a system that allowed them to care less about the amount they earned, the cap was set at 1.5 percent.
Anything higher will lead to arrests.
Once the bank’s business loan function is activated, it will fully suppress the interest rates in the private lending market, maintaining them around 1 to 1.2 percent. As for the bank’s personal loan function, it needs to wait a bit longer. Firstly, the bank needs time to build credit profiles; secondly, there are not many big-ticket items in the territory to consume. There are no apartment houses, no cars, and even mobile phone signals have not been established yet, plus not every household has access to electricity yet.
’Business’ is indeed a bit small.
’Luxury items’ would not possibly appear until after a month at the earliest.
Business loans.
That is the main goal of this investment promotion conference.
It is to complete that ten billion Asian dollar loan task.
In theory, all the companies under the Myanmar Bank could complete this task. After all, they are all about heavy industry and high-tech equipment, which are quite valuable. But now all the factories are not yet built, they can’t just buy everything all at once and put them aside right? Who would be responsible if they go bad?
Another method is to loan the money for it to be saved in the bank and not spent. However, this method was vetoed by the system. Any loan that is not urgently needed by a company and is aimed at operation will not be counted as an effective loan.
So Tang Qing had no choice but to think of a different approach.
That is to broaden the economic scale of the territory, arrange for a full industry layout, and let everyone borrow loans. This way, the task could be quickly completed, and at the same time, more jobs could be created, which would facilitate the completion of another task of attracting deposits.
Loans issued could be for individuals or companies. They all counted as loans.
However, deposits are different. Only residents’ savings could be considered. Since the assets of companies circulate a lot, they were not included.
That’s a bit exploitative.
Such a strange way of statistical analysis.
Apart from complaining, Tang Qing was out of options. All he could do was gradually develop the economy, strive for more foreign investment, increase per capita income, and expand economic scale.
He felt like playing a construction game.
Really can’t understand why starting a bank was made this complicated.
"Leader Ling, can we borrow to purchase these equipment?" After seeing this, Wei Hao immediately asked.
Ling slowly said, "Yes, you can borrow to buy these machines, interest-free within three years. After that, it’s computed at 6 percent per year as simple interest. The maximum term is ten years. If you choose to loan, these machines will be part of the shares of your registered company to be held and supervised by the Myanmar Bank. You are required to provide financial data monthly. Once you earn enough money, you can redeem the loans according to the amount owed. Before the loan is repaid, the bank has the right to dividend sharing."
Simple interest of 6 percent, which means for one million worth of machines, you need to repay an additional 60,000 per year after three years. It’s quite an eccentric method. Tang Qing chose not to apply compound interest because there was already a considerable ’transfer fee’ when these machines were sold. For example, a machine that costs ten million at market price was only sold for just over three million in the mall, but when it was sold to these businessmen, the price was more than six million.
It was directly doubled.
Everyone makes money.
For some machines with higher scientific and technological content, the greater the price difference, the more you earn.
Therefore, for interest and such, collecting a symbolic amount is fine. It is precisely because of this, that there is interest-free for the first three years.
Wei Hao had no more questions.
The others were also tremendously surprised. They initially thought they would have to empty their savings and even borrow money this time. They didn’t expect that the Myanmar Bank would directly solve their problem. As for the conditions, they agreed to them. The only thing they did not know was whether the equipment prices were reasonable. However, with the rapid development in the territory and restrictions on the license to limit competition, an expensive price wasn’t something they couldn’t accept too.
Green light flashed in the businessmen’s eyes.
Ling continued, "Alright, you can start voting now. To improve efficiency, every one of you can choose three industries in each round. If only you choose one, you automatically win that operating license. If two people choose, if it has a strong regional characteristic like a brick factory which has inconvenient transport, there will be one brick factory in each town. At that time, multiple choices can be made. But if it exceeds the upper limit, lots must be drawn. After the completion of the first round, the remaining projects are announced, you can continue voting."
Upon hearing this.
The businessmen below began to pick their desired industries with pen and paper, finding it difficult. Choosing three out of a few hundred, the odds were low. Everyone was racking their brain; some wanted ten, but couldn’t help it, only three could be chosen and in the end only two could be selected.
Ten minutes later.
All of them handed in their paper ballots with expressions full of dilemma. The opportunity cost for this vote was so high that it made them all feel rather distressed.
After collecting the ballots, the soldiers began to count the votes.
The results were announced.
Some were overjoyed, some were saddened, and some were almost in tears.
Round one.
Wei Hao won the draw and secured the qualification for a plastic factory.
However, he lost the other two voting projects.
Second round.
Wei Hao won a brick factory license in the draw, not in these two under-construction towns, but on Talents’ territory, which made him dance with joy.
Next.
Third round.
It wasn’t until the fourth round that the businessmen of ’private enterprises’ in the whole hall finished selecting the industry, while those ’state-owned enterprises’ remained silent.
"Alright, your choices have been counted. Tomorrow, take your IDs and bank cards to the Bureau of Industry and Commerce to register your companies, lease contact sites, recruit staff, purchase land for building factories, etc. As for the design and equipment installation of the factory, someone will discuss it with you. Now let me announce another thing. The Myanmar Bank will open a business loan service in the future. You can borrow from Myanmar Bank based on your corporate credit for regular business operations," Leader Ling slowly said.
These bosses are likely to be cash-strapped, selling land, renting houses, and recruiting all cost money. The loan task for these few days will probably be completed quite a lot. Tang Qing was even thinking about whether to implement a pay-in-advance system in his territory so that more loans can be granted. However, he thought it was a bit troublesome. Just after joining the company, they would get a month’s wages right away. He thought, where in the world such good things happened, so he did not pass this ’brain fart’ plan.
Next.
Leader Ling announced one by one the various policies to encourage industry and commerce in the territory.
As he spoke, the audience became more and more excited.
Three years of tax exemption.
Export tax refund.
Land incentives.
Business loans.
Industry support policies.
That’s all.
Even at the end, Leader Ling announced a major piece of news, that is, a month later, the territory will roll out four insurance systems for old-age, medical, work-related injuries, and childbirth, which all company employees must pay compulsorily.
There’s no unemployment insurance and housing provident fund since as long as you have the strength in the territory, you won’t lack work. Also, there’s no sign of commercial housing yet, so a welfare housing allocation system might be implemented in the short term, so these two have not been added.
The bosses didn’t say anything after hearing this. The ’ruler’ of this land has spoken, they had to listen, who would dare to say a word of disagreement, and adding it all up, it’s not that much, they wouldn’t suffer a loss.
This conference is considered an internal meeting in the territory. All businessmen present were born and raised in the territory. Next time, outsiders who are optimistic about the local economy will be invited. There won’t be a shortage of attendees because mobile phone supplies will start by then, and this ’high-precision’ industrial power will certainly draw many people’s attention here.
At that time, Tang Qing will bring out more investment projects. If the conditions are right, he can use technology and equipment to negotiate market shares. When that time comes, it will be the start of the whole territory moving onto the right track.
It will also be the moment for the Myanmar Bank to start making a move.
After the meeting.
The businessmen went back happily.
They’re preparing for the company dossier, ready to start a brand new life. Why are they confident in these projects? It’s simply because of the licensing system, which is equivalent to local protection. Besides, along with Leader Ling’s complete industrial planning, there’s no chance these enterprises won’t be able to make money.
As for where these pieces of equipment come from, it’s not something they need to worry about.
Meanwhile.
Wangsa also found out about the business policies and structure in the territory.
He was filled with doubt.
Leader Ling didn’t ask him to buy these pieces of equipment. How can he start his factory? Could it be that the equipment is provided by Myanmar? But there’s no news about it.
Forget it.
He will wait and see.
Actually, Wangsa doesn’t want to take this business for real. Because the equipment involves a wide range, it’s troublesome to deal with it. If Myanmar takes over this, it’s not bad either.
Wangsa was still praying that Leader Ling would not look for him.
What he didn’t expect was that Leader Ling would never look for him. The equipment that Wangsa could sell here was basically not very technical, and some were even obsolete. How could they compare with the latest industrial equipment in the mall?
Who would want Wangsa’s junk?
PS: Chapter 3, this is all for today, I am exhausted!!
