Li Cheng vividly described the prospects of the supermarket to Director Yang. Director Yang was moved by Li Cheng's words and no longer had any concerns about the loan to be issued.
However, he told Li Cheng that the loan would only be granted after approval from President Hou.
Li Cheng was not worried about this matter at all, because the money included interest to be recovered, and President Hou would definitely approve it quickly.
The two discussed how to handle the money, and then Director Yang said, "Li Cheng, I have a big problem here, it's the heavy machinery factory..."
The Heavy Machinery Factory, with over 10,000 employees, is the largest state-owned enterprise in the city and also the branch's largest client.
However, this customer was a burden to the branch, and all the previous branch presidents, including the director of the credit department, were unwilling to take care of the heavy machinery factory's affairs.
However, the main account of the heavy machinery factory is in the branch. Therefore, many matters of the heavy machinery factory, especially loans, have to be handled through the branch.
Director Yang is now facing two problems. One is that the interest on the loan to the heavy machinery factory has not been repaid for another year, and the outstanding interest has reached 40 million.
President Hou ordered Director Yang to recover part of the interest no matter what, otherwise, it would be difficult for President Hou to speak when he went to the municipal branch to report on his work.
The second problem is that I don’t know what kind of connections the heavy machinery factory found, but it actually borrowed another 70 million yuan from the provincial branch to pay the workers’ overdue wages.
Because the 70 million was a loan, it was naturally supervised by the branch's credit department. Now that the 70 million had arrived, Master Yang instructed the sales department not to release the loan for the time being.
Director Yang told Li Cheng, "70 million has now been transferred to the Heavy Machinery Factory's account. The provincial branch designated the loan to the Heavy Machinery Factory, and also designated us to oversee it..."
Li Chengxin said, "What the hell is this supervision? The provincial branch is reminding the sub-branch not to try to take advantage of this money. Regarding the interest owed by the heavy machinery factory, you guys should figure it out on your own."
The heavy machinery factory had a large workforce, and Li Cheng knew they hadn't received any wages in nearly a year. Furthermore, because the factory had been performing poorly, it was said that it owed many people, including retirees, medical bills.
Li Cheng estimated that the 70 million yuan was borrowed from the provincial branch by the heavy machinery factory in order to ensure that the workers had money to celebrate the New Year. He didn't know how he had borrowed it.
Li Cheng said, "Director Yang, President Hou has given you a task, and you can only complete one thing. That is to honestly deliver the 70 million to the heavy machinery factory so that those people who haven't received their wages for a year can have money to live on."
Director Yang certainly knew that this money could not be touched. Although he ordered the sales department not to pay the money for the time being, he knew that not a single cent could be deducted as interest.
As long as he ordered the deduction of money, the workers from the heavy machinery factory dared to block the branch door.
Li Cheng added, "Although we can't deduct this money, we must let them know that we are a bank, not a welfare home. Even though this money is used to pay salaries, they will have to pay it back sooner or later. Including principal and interest, not a single cent less."
After hearing these words, Director Yang just smiled. Everyone understands the principle, but doing it is another matter.
"It's hard to explain to President Hou!"
Director Yang was always troubled by the Heavy Machinery Factory, but he knew that the Heavy Machinery Factory couldn't afford to pay a penny in interest. Therefore, he was unwilling to give the Heavy Machinery Factory the 70 million yuan loan.
Li Cheng thought for a moment and said, "I remember there's a technical school at the Heavy Machinery Factory right by the river, right?"
Director Yang nodded and said, "You're talking about the technical school run by the heavy machinery factory, right? They've been unable to recruit students for a long time now. I heard it's been idle for a long time."
"That's it. Notify the heavy machinery factory and have them mortgage the technical school to our branch. Only once the mortgage is completed will we release the loan."
Director Yang was stunned when he heard this, and thought to himself, you don’t mind anything. The land, factory buildings and equipment of the heavy machinery factory have all been mortgaged, and now you want me to set my sights on that technical school. But is that technical school worth 70 million?
Li Chengcheng saw through his thoughts and said, "Something is better than nothing. The technical school is in a good location. This way, President Hou will have something to say when he reports to the city branch."
Director Yang thought about it and agreed. Even if the interest could not be collected, having a technical school as collateral could at least be considered as a sign that everyone was doing their best at work.
So, Director Yang called the financial director of the heavy machinery factory in front of Li Cheng and told the people of the heavy machinery factory what Li Cheng had just said in the name of the branch.
While waiting for the reply from the heavy machinery factory, Director Yang told Li Cheng that there was nothing serious on the credit department's side. The interest that could not be collected could not be collected anyway. Even if those companies were forced to death, they would not be able to come up with the money.
Li Chengjiu told Director Yang that the mortgages should be made as soon as possible, whether it was the factory buildings and land or the machinery and equipment of those enterprises.
Otherwise, once the problems of these companies are exposed and the relevant municipal departments intervene, the final outcome will be bankruptcy. And the banks will suffer the most from bankruptcy liquidation.
Director Yang understood this. Furthermore, he knew that bankruptcy liquidation would require him to shoulder the brunt of the burden. Therefore, he thought Li Cheng's suggestion was a good one and felt that the mortgage should be prioritized.
In this way, if these half-dead companies go bankrupt, banks, as the largest creditors, will hold the most assets.
Moreover, after the assets of those companies have been mortgaged, whether they go bankrupt or not is no longer a matter that can be decided by the relevant municipal departments alone.
Director Yang thought for a while and felt that what Li Cheng suggested was more important than collecting interest.
"Li Cheng, your suggestion is very good. After the end of the year, I will organize people to count all the borrowers and complete all the unsecured documents. I don't believe that not paying back the debt can become a good thing."
For those companies, not paying back the debt is really a good thing.
For example, no one would consider how or with what means the heavy machinery factory would repay the loan it had obtained. However, everyone at the heavy machinery factory would say that this was a great thing.
Everyone received their overdue wages, and the medical expenses of retirees were also provided for. Who can say that this is a bad thing?
In many people's minds, the bank's money is the country's money. It seems that the country's money can be spent for free.
Li Cheng said, "Yes, we will never grant loans without collateral. No matter what kind of company you are, how big your background is, or how deep your connections are, without collateral, not a single cent of loan will be granted. If you don't repay the loan, you're sucking the blood of the country and the people."
Li Cheng believes that finance is the lifeblood of the economy. If this lifeblood is unhealthy, the economy will be unhealthy.
Although banknotes are printed by a printing machine, once they are given the value of money, they become something as important as blood.
You can't drink blood, no matter what the reason is.
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