Baotou Merchants Self Immolation Caused Financial Aftershocks

Behind them, a huge amount of 1 billion 237 million yuan. debt Surface

In April 13th, Jin Libin, chairman of Baotou Huilong group, died on fire. However, with this important business in Baotou, folklore assets are as high as 4 billion yuan. businessman After death, a huge amount of private debt up to 1 billion 237 million yuan has surfaced, including business. Bank Many financial institutions such as rural credit cooperatives, pawnshops, Guarantee Corporation and so on are more or less involved. Jin Libin's fall has triggered a financial aftershock in Baotou, where private finance is active.
The monthly interest rate is two hundred million.
54 year old Yu Chengfei (a pseudonym) was informed of Jin Libin's death message while he was having dinner. After hearing the news, he burst out of a meal and had a heart attack. His family was sent to the hospital and died. He died in the early hours of April 16th. He is one of thousands of private borrowers who finance Jin Libin and Huilong group. The sudden death of Jin Libin made many creditors and shareholders unprepared, and a great panic began to spread among the crowd.
According to relevant media reports, the high interest financing of Huilong group amounted to 1 billion 237 million yuan, and the bank loans amounted to 150 million yuan, totaling more than 1 billion 400 million yuan. At the beginning, the creditor relied on Jin Libin's trust, borrowed high loans, and won a lot of interest repayment: creditors who borrowed less than 100 thousand yuan each month had 2 points profit; creditors who borrowed more than 100 thousand yuan were 3 cents a month. This is obviously several times higher than the interest in banks.
As a result, there are more and more people in Baotou lending to Jin Libin. From civil servants, restaurant owners, teachers and supermarkets to selling vegetables and selling steamed bread, ranging from millions to tens of thousands of yuan, Jin Libin's private lending almost covers all levels of Baotou. Tens of millions of billions of borrowers are not uncommon among many of Jin Libin's creditors.
"In the past few years, in fact, the average annual interest rate has been two or three billion, and the daily interest rate will be 5 million yuan," he said. Ma Weimin, vice chairman of Baotou Federation of industry and commerce, who is well aware of Huilong group, said. Anecdotal rumors that Jin Libin's monthly interest payments even amounted to two hundred million yuan.
A bank clerk hiding
Jin Libin's crazy lending has also led to the madness of a large number of borrowers. Reporters in the interview found that many people use their real estate, cars as collateral, to the bank loans, and then lend money to Li Bin. And a bank clerk has to borrow money from his job, borrow money at high interest and lend money to Jin Libin again, just to get high interest income.
According to people familiar with the matter, a 5 million yuan loan came from a local rural credit union staff. "She took nearly ten million yuan of interest with 1 cents and 2 interest per month, and then paid 3 points to Jin Libin." Shortly after Jin Libin's death, the clerk realized that the money he had lent to Jin Libin was hopeless, and she chose to hide when many borrowers came to pay the debt.
Pawnshop denied borrowing
Private lending is flourishing in Baotou. Many local pawnshops are also the big creditors of Huilong. In the two weeks after Jin Libin's death, the major pawnshops in Baotou met with a concentrated payment from panic.
One creditor revealed that the Baotou time pawnshop limited liability company in Donghe District of Baotou had borrowed a sum of 60 million yuan from Jin Libin and secured a sum of 70 million yuan.
In May 4th, Zhao Yanru, the deputy general manager of the company, denied the two payments. She admitted that one creditor of the company had lent 60 million yuan to Jin Li Bin, but emphasized that it was an individual act.