debt crisis

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Debt crisis（ debt crisis ）Refers to International lending A large number of liabilities in the field exceed the borrower's own Solvency , resulting in inability to repay debts or the need to postpone repayment. 1980s developing country A situation beset by debt. There are many indicators to measure the solvency of a country's external debt, the most important of which is redemption ratio of foreign debt The indicator refers to the ratio of the debt service amount of a country in a year to the export collection amount of that year or the previous year. Generally, this indicator should be kept below 20%. If it exceeds 20%, it means that the external debt burden is too high.

Chinese name: debt crisis
Foreign name: debt crisis

developing country: 1980s
Measurement: foreign debt Solvency

catalog

six Solutions
seven Legal remedies

Basic Introduction

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The English name of the debt crisis is debt crisis 。

Refers to International lending A large number of liabilities in the field exceed the borrower's own Solvency , resulting in inability to repay debts or the need to postpone repayment.

debt crisis

1980s developing country A situation beset by debt. There are many indicators to measure the solvency of a country's external debt, the most important of which is redemption ratio of foreign debt The indicator refers to the ratio of the debt service amount of a country in a year to the export collection amount of that year or the previous year. Generally, this indicator should be kept below 20%. If it exceeds 20%, it means that the external debt burden is too high.

The debt crisis of developing countries originated in the 1970s and broke out in the early 1980s. From 1976 to 1981, developing country By 1981, the total external debt had accumulated to 555 billion US dollars. After two years of adjustment, the crisis eased, but the effect was not very great. By the end of 1985, the total debt had risen to 800 billion US dollars and 1035 billion US dollars by the end of 1986. among Latin America The region accounts for the largest proportion, about 1/3 of the total debt, followed by Africa , especially in the sub Saharan region, the crisis is deeper. In 1985 Debt ratio Up to 223%. Among all developing countries, the main ones suffering from debt problems are Brazil 、 Mexico 、 Argentina 、 Venezuela 、 Chile And India. The characteristics of the debt crisis in the 1980s: ① private bank Loan growth is higher than that of intergovernmental and Loans from financial institutions Fast growth. ② short-term loan The proportion increases, Medium and long-term loans The specific gravity decreases. ③ The loan interest rate is more floating than fixed.

Serious debt crisis Debtor country , or for developed country The creditor bank of, and even the whole international society , have formed huge pressure. include International financial organizations The relevant parties of Debt rescheduling 、 Debt capitalization and securitisation Etc. Although many measures have had some effect on alleviating the debt crisis International debt The situation is still very serious, and the debt crisis is far from over. 1989, all developing country Its debt balance has reached 1.262 trillion US dollars, Debt of developing countries Balance and current year Exports The proportion of Debt service ratio 22%, while in Latin American countries with serious debt situation, the ratio was as high as 31%. By 1990, the total debt of developing countries had reached $1.341 trillion.

Condition characteristics

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Huge scale

After the debt crisis broke out, developing country The total amount of debt increased sharply, reaching 993.2 billion US dollars in 1988 and more than 1300 billion US dollars in 1990. In particular, since 1984, due to the accumulation of total debt and the increasing burden of debt service international commercial loans Reduction of funds, international Borrowing capital It has formed a trend from developing countries to developed country Net outflow of, developing in 1988 National funds The net outflow has exceeded 50 billion US dollars, which shows that the debt burden is quite serious.

High concentration

Since 1982, developing country Half of the external debt is concentrated in a dozen countries, mainly middle-income developing countries in South America. In 1989, their total debt was still growing, and the proportion of debt principal and interest to be repaid in that year in export revenue was still more than 40%, far exceeding the internationally recognized 20% cordon , their total debt accounts for Gross National Product The proportion is still more than 50%. Moreover, for these heavily indebted countries, more than 70% of their debt is owed to international private commercial banks, so the burden of debt service is very heavy.

Difficult situation

Among the countries with the heaviest external debt burden, there are also African countries located in sub Saharan Africa, which is the poorest region in the world. Although their total external debt is small compared with the main debtor countries in South America, it was still less than 130 billion dollars at the end of the 1980s, and about 70% of them were official loans, their total external debt is almost equal to the gross national product.

origin

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The debt crisis has internal and external reasons. From each developing country In terms of internal factors, since the 1960s developing country Vigorously develop national economy , in order to speed up Growth rate We quickly changed our backwardness and borrowed a large amount of foreign debt. However, due to various reasons, the borrowed foreign debt failed to rapidly promote the development of the domestic economy. High input and low efficiency caused difficulties in repaying the principal and interest. From the perspective of external factors, the causes of the debt crisis include: ① adverse international economic environment. The worldwide economic depression in the early 1980s was one of the reasons for the debt crisis. ② In the late 1970s, international financial market The situation is unfavorable to developing countries. international credit crunch Private loan to developing countries Commercial loans Too much also led to the debt crisis in the 1980s. ③ The high interest rate implemented by the United States in the early 1980s increased the debt burden of developing countries. The outbreak of the debt crisis has an impact on developing countries and developed country All have an impact. In this regard, International financial institutions The joint efforts of the governments of relevant countries and creditor banks developing country Rearrangement of debt, reached some Deferred payment The agreement eased the crisis. The majority of developing countries also economic policy The crisis was further alleviated through adjustments and strengthened mutual cooperation and coordination.

The causes of the debt crisis in the 1980s are very complicated. To sum up, there are six main reasons:

① Two oil price hikes in 1973-1974 and 1979-1980 led to many countries Balance of payments A record number of Deficit At the same time, some oil producing countries in developing countries have a huge amount surplus 。

② These surplus Most of them are deposited in the bank for loans, or Capital return 。

③ Negative figures in the second half of the 1970s Effective interest rate Stimulation and quilt of Commercial credit Inspired by people's enthusiasm, developing country There was a borrowing boom.

④ Many debtor countries use (or mistakenly use) borrowed funds to expand consumption, or invest those low Yield In projects (especially The first oil crisis After the outbreak).

⑤ Borrowing country Terms of trade The situation deteriorated almost throughout the 1980s.

⑥ In order to eliminate the serious inflation in the 1970s, the developed industrial countries have slowed down economic growth and raised interest rates significantly fiscal policy and financial policy , which makes Debtor country The export opportunities of the debtor countries are greatly reduced, which further weakens the debt repayment capacity of debtor countries.

market order

1、 market subject The behavior of. first, state-owned enterprise Property relations Not really straightened out, the enterprise and its staff state-owned property conscientiousness It is not strong, so that a large number of state-owned assets have been lost, and debts have to be defaulted. secondly, Company system Implementation and Shareholding reform Not on the right track. On the one hand, due to the lax examination of the establishment conditions of the company by the competent authority Registered capital The implementation was not strictly supervised, resulting in many nonconformities Company establishment Conditional economic organization Registered as a company, most of these companies rely on loans to maintain their operations after their establishment, and some even rely on fraud to survive. It is more common for them to default on debts; On the other hand, in the process of joint-stock reform, some enterprises, regardless of their own economic capacity, raised a large number of shares or issued bonds to the outside world. Because they underestimated the business prospects in advance, they often left a debt laden mess. Thirdly, the legal representative and personnel Of legal responsibility Unclear, so that some people Abuse of power , profligacy and misappropriation Enterprise property 。 2. Local, department and industry Protectionism Serious. Enterprises in different regions, departments and industries Creditor's rights and debts When the interests of the region, the department and the industry are involved, the relevant regions, departments and industries will adopt a large number of Local protectionism Measures, special protection and support at home, and discrimination and exclusion at abroad, making creditors in other regions, other departments, and other industries unable to exercise their claims. At present, protectionism Administrative law enforcement , finance and even judicial departments The performance is quite outstanding. Taking the judicial department as an example, some Judicial organ 、 Judicial personnel If a local enterprise is sued by a non local enterprise for debt performance, it will be obstructed in every way when filing the case. It will shield and protect local parties in the trial, and will deliberately delay, delay or even refuse the execution. 3、 Unfair competition Serious. Some enterprises are willing to adopt commercial bribe , Release sham publicity Defective sales promotion by other means fake commodities , cheat signing contracts, or take the opportunity to occupy the market and crush competitors. The consequence of doing so is to suffer Enterprise products Backlog, into crisis, had to rely on debt, debt.

Enterprise itself

debt crisis

The main reasons for the creditor enterprise are: 1. The failure in concluding the contract. First of all, they didn't carefully review the other party before signing the contract Subject qualification Business scope, credit status Performance ability As a result, he was cheated, the payment for goods was empty, or the payment for goods could not be delayed for a long time; Secondly, it is concluded Contract terms Incomplete, irregular form, or Subject matter The type, specification, quantity and quality of Term of performance . The location and method are not clearly specified, or the approval, registration and notarization procedures required by law are not handled, resulting in Invalidation of contract Or unclear responsibilities; Third, the legal provisions cannot be effectively used Guarantee mode Protect yourself, so that the realization of your creditor's rights is not guaranteed. 2. Deficiency in performance of the contract. First, they did not exercise their creditor's rights in time and did not collect payment within the statutory or agreed time limit for performance. As a result, the debtor's enterprise's creditors continued to increase and the amount of debt continued to expand, so that it was unable to repay, and had to let it default; The second is about our own Breach of contract Do not pay attention. If the other party claims for compensation due to the provision of unqualified products or services, they do not actively assume the corresponding legal responsibilities and are not timely Take remedial measures Or make compensation, causing the other party to default on debts on this pretext; The third is that we cannot pay close attention to the division, merger, cancellation, bankruptcy and other situations of the debtor's enterprise, and we have no knowledge of its financial changes, so we cannot participate in the liquidation process of the other party in a timely manner. Finally, when the other party has creditor's rights against a third person, it does not exercise the right of subrogation according to law, and when the other party transfers assets to a third person without authorization to avoid debts, it does not exercise the right of cancellation according to law, etc. 3、 Right of claim Slack in exercise. After the other party breaches the contract, the creditor should have exercised the right of claim in a timely manner and required the other party to bear Liability for breach of contract 。 However, in practice, some creditors are often lazy to exercise their right of claim, neither negotiating with the debtor in time to deal with it, nor requesting the arbitration authority or the people's court to solve it in time, so that more than Limitation of action And thus lost the right to request the people's court to Proceedings The right to guarantee the realization of one's own creditor's rights.

The main reasons for debtor enterprises are as follows: 1. Blind project, serious lack of funds. 2. There are a lot of retaliatory breaches. When others have defaulted on their obligations to the enterprise, the enterprise will not perform its obligations to the third party. 3、 financial management Chaos. 4. The social burden is heavy and unnecessary expenditure is excessive.

Causes of European debt

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1. Economic development area out-off-balance

eurozone Of National economy Large gap between regions Development pole out-off-balance. Among them, Germany Italy 、 France While Greece Ireland The economy of peripheral countries such as Germany is relatively backward gross domestic product It accounts for 20% of the total GDP of the euro area, and the proportion of Germany, France and Italy is as high as 50%. After the establishment of the Eurozone, Germany, Italy, France and other core countries used the original advantages of the system, technology and capital, and even the so-called "regional awareness and value advantages" to enjoy the benefits of regional integration and a single currency region; On the periphery of the core circle of the euro area, Greece, Ireland and other countries have formed Comparative disadvantage Band. In the single currency area, unified monetary policy More inclined to Germany, France and other countries Economic objectives , resulting in regional development The imbalance is becoming more and more serious.

2. Countries industrial structure unreasonable

First, the unreasonable allocation of resources in Greece, Ireland and other countries Allocative efficiency The economy is relatively vulnerable due to the low level of financial crisis Great impact. Greece and other countries have been industrialized for a short time, and natural resources Limits, so Overall structure Unreasonable for industrial products Import dependency Larger, its export products are agricultural products, resource based primary processed products and Metalware Mainly, lacking added value Higher Technology intensive products 。 along with Asia The rise of emerging countries has greatly affected their low value-added export products, euro Its appreciation also hit its exports, leading to the trade deficit expanding year by year. Labor, energy, etc. in Greece production factors market competition inadequate, Resource allocation efficiency Not high, monopoly Greece Public enterprises Great resistance to reform, public utility The market opening is relatively lagging behind. The state-owned enterprises in Greece are not only inefficient, but also inferior in service quality and high in price, becoming a financial burden. In order to attract voters and win the general election, the government has to vigorously expand public sector , further reducing the efficiency of resource allocation. Ireland has been known as the "star" of the euro area since it joined the euro area. stay subprime crisis Previously, its economic growth has been significantly higher than the average level of the euro area. However, Ireland's economy is dominated by exports, accounting for 70% of the whole national economy, which means that the increase of Ireland's exports is to reduce its Domestic consumption At the cost, Ireland's economy was excessively dependent on the export industry, which caused Ireland to suffer a heavy blow after the subprime crisis.

secondly, taxation system Caused by defects on economic fluctuation Increased risk. Greek Underground economy The scale is world-famous, according to World Bank In the 2003 report, the underground economy of Greece accounted for Total GDP As high as 35%, the Greek government loses revenue At least equivalent to gross domestic product 4%. Unlike Greece, Ireland adopted Low tax rate Policies to attract foreign investment Its corporate tax rate is only 12.5%, compared with 30% in Germany and 33% in France. On the one hand, low tax rates have reduced Government revenue On the other hand, in the period of economic prosperity, it led to excessive money flow, which made the economy bubble. However, after the outbreak of the subprime crisis, FDI The outflow of FDI caused a greater blow to the economy.

3. Over reliance on credit for economic development, Real estate bubble serious

Greece 90% Family wealth It exists in the form of real estate, private Residential investment It accounts for about 20% of Greek investment. In the process of economic development, Spain also experienced a real estate bubble. In 2007, before the financial crisis, Spain's real estate output accounted for 17% of GDP, 20% of tax revenue, and the construction industry employees accounted for 12.3% of the national employment. The proportion of Spanish foreign capital's total investment in real estate in 12 months to GDP once reached 90% in 2003. After the outbreak of the economic crisis, a large amount of FDI flowed out, which was only 35%.

The situation in Ireland is slightly different. Ireland has adopted a lower tax rate to attract a large number of FDI balance of trade surplus , leading to the overflow of liquidity, Real estate price It has risen for 10 consecutive years, with serious bubbles. As of 2009, Ireland attracted foreign direct investment The amount of stock reaches 210 billion euro ； In addition, Ireland has a large trade surplus every year. In 2009, the trade surplus was 38.7 billion euros, which totals 248.7 billion euros. Since 2000, Ireland House price index The index soared from 70 to 140 in 2007.

The rise in house prices has a positive wealth effect on residents, improving consumer confidence, Resident consumption Growth has also driven economic growth. But under the impact of the financial crisis, Real estate bubble Rupture, resulting in unemployment rate High enterprises, banking Bad debt rate a surge. In this environment, the debt crisis is inevitable.

Crisis impact

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In Canet De Berenguer, Spain, the Canet seaside apartment in the beach town in the south of Barcelona has been vacant for many years, Real estate bubble Leave this country with another "ghost town" where no one lives and a bunch of people who don't care Unfinished building 。

However, the public swimming pool at Canet Beach was full of laughing children, and almost every balcony was hung with bright beach towels.

The 308 apartments at Canet Beach sold out in just 30 days in the spring, and most villas were robbed by many anxious Spanish families. No one seems to be able to refuse such a deal: just spend market price Half of them can buy a holiday home.

Have a lot of fixed assets In the past, 30% of the banks listed their properties for sale at a small discount, and they also began to sharply reduce their prices, hoping to sell these assets as soon as possible.

Some experts worry that they are just repeating the mistake of lending 100% of the loan. But canny Spaniards - those who still have jobs - are lining up to grab them.

No one expects Spain's housing crisis to pass quickly. There are 1.2 million unsold first-hand houses in this country, and Spain's real estate industry is far from on track. But to the surprise of many people, Spaniards have not lost their enthusiasm for buying houses, as long as the price is appropriate. Compared with putting money in the country In the bank Many Spaniards would rather exchange their money for bricks and Tile 。

So many people came on the first day of the sale of Canet apartment. Jess ú sMart í nez and his wife had to go to work that day, and they planned to visit the house the next day. They asked their parents to make an appointment for them first. The couple finally bought an apartment with two bedrooms, a terrace and a parking space for $92000.

"I don't think many people can buy an apartment." Mart í nez was a little breathless with excitement. "We have never seen such a price before. Everything was settled in two days."

Many experts believe that such a hot price may mean that Spain's real estate will begin a long transition period. In the crazy period of construction, the bank blindly lent to developers and real estate developers, and finally in 2008 economic crisis It has led to billions of bad debt 。 At first, experts believed that banks had done everything possible to reduce losses, including continuing to hold real estate, so that the value of their losses would not be recorded.

After numerous audits, many experts believe that the extent of bad debts is still unclear, and the results of many recessions will continue to gather. National Bank of Spain Last month's report found that 9.9% of national loans could not be repaid in time, up from 9.4% in the previous month.

But in recent months, many banks have been forced to record losses for on sale Clear the obstacles. “ Toxic assets ”Brought by“ Bad bank ”The imminent sale will bring more houses.

Most of the reduced price houses are located in over developed tourist attractions or remote suburbs during the large-scale development period. Madrid Seseñ A is the famous "ghost town" of the country, which has been basically empty since the bubble burst in 2008. But a few months ago, Santander Bank, which owns 500 apartments in the city, began to sharply cut prices. In January, the bank's advertisements for the remaining houses showed that the price was only one-third of the original price.

Last month, Banesto Bank listed 1800 properties on its website, price cut percentage As high as 80%, good houses are seen once in 20 years Low price sales 。 The real estate industry has been hit hard nationwide.

"This is a year to face the reality", said Fernando Enciner, one of the shareholders of the real estate company, "The good news is that there is a great demand for low-cost housing."

Official prices have fallen by only 23 per cent since 2007, although Spain's vacant property prices have fallen sharply. Mr. Enciner said that this was unrealistic. If banks want to sell, they will have to cut prices again, although Sales ability There are great differences in different regions.

The number of new loans was basically the same as that in 2011. But experts believe that the bank's floor price Promotion is the main reason for all this. Eduardo Mendiluce, head of real estate department of Cataluny Caixa Bank, believes that the bank is selling its houses at an average price of 60%. After 7400 houses were sold in 2011, the bank sold 6200 houses in the first half of 2012 alone.

After the debt crisis broke out, International Monetary Fund And the EU to avoid Greece appear Debt default , decided to provide Greece with two rounds of bailout loans totaling 240 billion euros, and requested Greece to implement a series of austerity and reform measures. These measures have affected the lives of some Greek people.

Solutions

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In terms of alleviating or solving the debt crisis, in addition to various existing solutions, three other factors are crucial: ① a favorable international economic environment, which includes increasing the openness of the international trade system and reducing the openness of the international trade system developing country Actual Financing cost ；② Debtor country Make strong and sustained adjustment efforts, including promoting domestic Macroeconomy Stability and economic structure And fundamentally improve the use efficiency of foreign debt; ③ Provide adequate External funds Flow volume, reversing the direction of debt state assets Creditor country The trend of reverse flow requires the exploration of new financing channel , promote direct investment And forms of securities investment.

Legal remedies

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The parties negotiate to pay off debts

China《 General Principles of Civil Law 》New implemented Contract Law Established the rule of autonomy of the will The parties have the right to establish, change and terminate independently without violating the prohibitive provisions of the law Civil legal relations The liquidation of debts between the parties should also belong to Autonomy of will Therefore, the behavior of the parties to settle their debts through negotiation should be recognized by law. Negotiated debt repayment is simple, low cost Interrupted prescription And other advantages, but there are also certain deficiencies If the debtor is not trustworthy and refuses to perform the debt repayment agreement, it can only be solved through other legal ways.

Litigation settlement of debts

Negotiated repayment is Private remedy And the court's compulsory repayment is Public remedy 。 If both parties cannot negotiate to repay the debt, the creditor enterprise may bring a lawsuit to the people's court to ensure the realization of its creditor's rights through the court's judgment. Of course, consultation is not a necessary procedure, and the parties can directly bring a lawsuit to the court without consultation.

Bankruptcy and debt repayment

When a debtor enterprise is insolvent, Insolvency When the debt is due, the enterprise as the creditor shall apply for the debtor in a timely manner according to law Enterprise bankruptcy And ensure that their creditor's rights are met to the maximum extent.

Merger and debt settlement

Merger debt settlement means that an enterprise purchases assets or shares of other enterprises in cash or exchanges shares for other enterprises Enterprise absorption and merger And make it lose Legal personality Or form a controlling interest in other enterprises to change their Legal entity By remaining enterprises or Holding enterprise The method of paying off the debts of the absorbed enterprise or the controlled enterprise. enterprise mergers Can give full play to the combination efficiency of enterprises, optimize the economic structure, and properly handle the debtor's remaining problems 。 After the merger, the debts of the merged enterprise shall be borne by the merged enterprise, and the employees of the merged enterprise shall be resettled by the merged enterprise, which is not only beneficial to Corporate debt And is conducive to maintaining social stability.

Debt to equity swap

Debt to equity swap refers to a debt repayment method in which the creditor enterprise and the debtor enterprise convert the creditor's rights into shares according to their value through negotiation, so that the creditor's rights can be converted into equity, and the enterprise debt can be eliminated. Debt to equity swap as an enterprise Corporatization An important measure of transformation has made certain achievements, but there are still many problems, so it is necessary to conduct in-depth exploration in practice.

Application for creditor's rights preservation

Creditor's right preservation refers to the way in which, according to the law, when the debtor does not exercise its creditor's right against a third person, or arbitrarily disposes of its property so as to affect the realization of the creditor's right, the creditor applies to the competent authority for taking corresponding measures to ensure the realization of its creditor's right with all the debtor's property. include Subrogation of creditors and Cancellation right 。 If the creditor exercised Subrogation If the legal basis of the right of cancellation is not very sufficient, the creditor's right preservation system in the new Contract Law is established to apply for Debt Preservation It provides basis and guarantee.

exercise Security interest

by Suretyship claim Realization of, China《 guarantee law 》It is stipulated that security interests can be created on the creditor's rights, including mortgage 、 Lien and Liens According to the principle that real right is superior to creditor's right, when the debtor fails to perform the due debt, the creditor can sell, auction the collateral according to law and have priority to be repaid with its price. However, in practice, many creditors do not pay attention to the role of real rights for security, do not make the debtor provide proper real rights security, or even if the debtor provides real rights security, they cannot actively exercise it when the debtor fails to perform its obligations Security interest Therefore, their creditor's rights cannot be realized.

In a word, although it is very complicated to solve the problem of enterprise debt crisis, there are many ways to solve it from the perspective of law, as long as enterprises pay full attention to their creditor's rights and debts and establish correct View of rights and obligations , actively and boldly exercise the rights granted by the law, and take various measures permitted by the law. The debt problem of enterprises can be successfully solved. At the critical moment when state-owned enterprises are extricated from difficulties, enterprises can get rid of the debt crisis Economic system reform And economic development.

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