The loan contract between enterprises is invalid

1. Article 61 of the General Rules for Loans of the People's Bank of China clearly stipulates that enterprises shall not handle lending or disguised lending financing business in violation of state regulations;

2. In November 199, the Supreme People's Court's Provisions on Several Issues Concerning the Trial of Disputes over Joint Venture Contracts stipulated that a joint venture was actually a loan, which violated relevant financial laws and regulations, and the contract should be determined to be invalid;

3. In September, 1996, the Supreme People's Court's "Reply on How to Deal with the Borrowers of Enterprise Loan Contracts Failing to Repay the Loans within the Time Limit" clearly stipulated that the enterprise loan contracts violated relevant financial laws and regulations and were invalid contracts.

Extended information:

Wenzhou issued a policy on August 1, 213. In the future, there will be no more than four banking financial institutions that can obtain loans for small and medium-sized enterprises in Wenzhou, among which the loans provided by the host bank to enterprises shall not be less than 5% of the total loans of enterprises in principle.

According to the Guiding Opinions on Banking Financial Institutions Increasing Credit Input to Promote the Healthy Development of Small and Medium-sized Enterprises issued by the Implementation Leading Group of Wenzhou Comprehensive Financial Reform Experimental Zone, the problems of excessive credit granting, multi-head credit granting and off-site credit granting in Wenzhou's banking industry are outstanding. In order to prevent the problem that too many bank loans are concentrated in one enterprise and cause corporate financing risks, all banking financial institutions in Wenzhou will implement the lead bank system and control the number of corporate loan banking institutions.

Zhang Zhenyu, deputy secretary-general of Wenzhou Municipal Government and director of the Municipal Finance Office, once said that many enterprises in Wenzhou had been in danger before, and many of them were "stuck" by loans.

Many banks lend money to an enterprise, and some enterprises get excessive bank loans, so they invest indiscriminately when there is no place to use them, and when they have just made profits, they are drawn by regulation. There is an enterprise in Wenzhou with an output value of tens of millions, but more than 2 banks have given it loans for hundreds of millions, and finally it has gone to the road of no return.

Reference: Baidu Encyclopedia _ Enterprise Loan