Decision Analysis Of Project Loan For The Rebuilding Of Jingshi Road In Jinan

The comprehensive rebuilding project of Jingshi Road which is started in the endof 2003 is the core item within the new general frame plans of Jinan city. As theborrower, city building investment company of Jinan applied to the local financialinstitutes for the loan of 2.4 billion yuan, this article analyzes the profits and risks toICBC brought by the loan operations of Jingshi Road rebuilding and brings up somemeasues and suggestions for defending risks.The operation of city building projects depends much on the externalenvironments. This thesis firstly analyzes the backgrounds of this project and thebasic situations Shandong province and Jinan city, among which the city building planand financial balance situations of Jinan city are important support to the feasibility ofthis project.Considering the competition elements among commercial banks is veryimpetuous, this thesis analyzes the power of each bank and the structure of marketcompetition in details which takes the role of loan operating bank. Combining therelations between banking market and national economy, it forecasts the developmentof local banking market, and analyzes the competity of Industral and CommertialBank of China (ICBC) in this business in directions of development goals and marketorientation.In the analysis of the qualification of the borrower, this thesis mainly considersthe functions, capitals and debts, credit situations and development foregrounds ofthe borrower. It also analyzes the feasibility of this building considering the nowsituations and contents of the item to be built, conditions, and investment structure.Because the borrower is mainly taken as the measure to finance for the localfinancial authority, the capital money and reimbursing money mainly depends on thelocal finance. On the basis of generally evaluating the common budget balance, fundsbudget balance and the balance beyond budget of Jinan city, it analyzes in details ofthe financial balance situation of Jinan city in its class considering the source ofreimbursement. On this basis it analyzes the reimbursing ability of the loan.At the same time, this thesis analyzes the impact of Jinan's GDP on the citybuilding item. It also discusses the indirect economic profits of this item throughanalyzing the impact of this project on the local market of real estates.