My Realistic Simulation Game

Chapter 226 Exaggerated Annualized Interest Rates

No one understood the urgency of time better than Qin Yuan.

Just as major media outlets such as Izvestia were reporting on the press conference at the Volga Automobile Plant, Qin Yuan returned without delay to Moscow, the epicenter of the Soviet Union's turmoil.

Upon his return, he immediately convened the core team to hear about the progress of various tasks.

Pan Shiyi first reported on the bank's approval process.

"Brother Yuan, the license for Far East International Bank has been officially approved. Here is the document."

"In terms of approval, in addition to the Security Committee making a call, the Moscow State Bank also gave us the green light in the process and did a lot of work."

Moscow State Bank?
Qin Yuan's gaze narrowed slightly as he glanced at Natasha and Elena.

"Qin was not driven by Natasha's father." Elena regained some of her former charisma, though she had become even more aloof.

"As far as I know, the person who directly contributed was Yakov Zhurenov, the head of the Moscow State Bank."

Qin Yuan keenly grasped this information.

Moscow State Bank was one of the Soviet Union's financial giants.

Although he had met the head office president once, it was not enough to earn such high regard from this important figure.

He knew in his heart that this person probably belonged to the same camp as Ekaterina, Sobchek, and others from St. Petersburg.

This interest group, which had grown within the Soviet Union, was far more powerful and influential than he had anticipated.

"It seems our 'friends' are even more welcoming than we imagined."

Qin Yuan said something meaningful without going into details, but everyone understood what he meant.

"President Qin, there's one more thing."

Pan Shiyi continued, "Since the press conference, several Western banks have proactively approached us. Deutsche Bank, Credit Suisse, and Morgan Stanley are all inquiring about loans and financing for our automotive project."

"They arrived so quickly?" Even Qin Yuan was surprised by the speed.

Pan Shiyi replied, "Yes, they arrived very close to each other, only about two or three days after the newspapers came out. However, the loan interest rates they offered were... very high."

Upon hearing this, Qin Yuan finally understood.

As expected, no one gets up early without a reason.

"There's no rush in this matter."

Qin Yuan pondered for a moment and then said, "Let's keep them hanging for now."

“We don’t need to limit our focus to just one or two companies. We need to be bolder; all Western banks in Moscow can be our financing targets.”

Qin Yuan only planned to borrow rubles this time, because the rubles would depreciate to nothing, so he could borrow them without worry.

If Western banks want to exploit the Soviet Union, then they're going to exploit these Western capitalists now.

Upon hearing this, Pan Shiyi's thinking clearly opened up. If he could get loans from multiple sources, he would have many more options.

It's like dating. If you only date one person, it's like begging for charity, like being a simp.

But if you talk to ten or twenty companies at the same time, then you are a "sea king" who has the choice!
“I understand, President Qin!” Pan Shiyi said solemnly, “I will conduct more negotiations with those Western banks.”

Qin Yuan nodded and instructed, "Right now, there are two things you need to do immediately. First, although the approval has been granted, the bank also needs to start preparations immediately, including site selection, decoration, and team building, so that it can officially open as quickly as possible."

"Secondly, and most importantly, the task of absorbing reserves must be started immediately."

At this point, he turned to look at Yi Xiaodi: "Xiaodi, have you found out the deposit interest rates of other banks?"

Yi Xiaodi had already conducted an investigation into the major banks in the Soviet Union and reported, "President Qin, everything you asked us to do has been investigated."

“The annual interest rates of Soviet state-owned banks were generally between 3% and 5%. In order to attract depositors, the branches of Western banks in Moscow offered higher interest rates, ranging from about 8% to 12%.”

Upon hearing this figure, Qin Yuan didn't hesitate for a moment and decisively ordered, "Too low! It's not competitive. Our Far East International Bank's annualized interest rate will be set at 18% to 25%!"

"what?!"

Upon hearing this, everyone in the room except for Pan Shiyi, who knew the inside story, gasped in shock.

Even the usually composed Yi Xiaodi couldn't help but speak up: "President Qin, this interest rate... while it may attract a huge number of depositors, the interest burden is too heavy. How will we make a profit? Isn't this like drinking poison to quench thirst?"

Interest rates of 18% to 25% were more than double those of Western banks and more than five times those of Soviet state-owned banks!
In traditional financial logic, this is almost suicidal.

Seeing the surprised and uncertain looks on everyone's faces, Qin Yuan simply smiled and said, "I have my own plans for the profit issue. You just need to remember that in this special period, on this special land of the Soviet Union, the value of speed and people's hearts far outweighs that little bit of interest cost."

"Do as I say, and I'll take responsibility if anything goes wrong."

Seeing Qin Yuan's certainty, the crowd, though still having doubts, no longer questioned him.

For a long time, Qin Yuan had established absolute authority through his consistently accurate and prophetic decisions. Only after the bank matters were settled did the atmosphere at the Chekhov Hotel truly improve.

The atmosphere became less tense, and the hotel owner served breakfast.

Binzi and Gangzi finally returned from Kuibyshev in the afternoon.

They finally breathed a sigh of relief when they saw Qin Yuan.

"Brother Yuan!" The two men looked tired and excited after completing their mission.

Qin Yuan looked at the two of them, overwhelmed with mixed feelings.

The thought that they were placed under house arrest by the KGB because of him...

After his release from prison, he immediately escorted rocket engines and procured various parts needed by Chery.

He patted the two men on the shoulders forcefully. "You must be tired from the journey. How's the shipment at home going?"

Binzi nodded emphatically, "It's all arranged. The rocket engine, the batch of car parts, and the bearings have all been safely delivered."

Gangzi laughed and said, "Brother Yuan, we've really broadened our horizons. We've been through thick and thin, and we've even seen the KGB dungeon."

Several people laughed.

From them, Qin Yuan also learned about the progress of the light industrial product exhibition and sales booth.

Wang Gongquan's connections with department stores across the Soviet Union went very smoothly, and this single round of transactions brought in over 20 million rubles, a huge success.

As for Sichuan Airlines' logistics routes, they are operating smoothly and business is booming.

Xu Zhenbang is now firmly in his position as regional manager, and he provides strong support for Far East trade.

It was under these favorable circumstances that Pan Shiyi, Yi Xiaodi, and others began to make intensive preparations for the opening of Far East Bank.

This news also reached the ears of some players.

The system's group chat caused an unprecedented stir among the players.

They never expected that Qin Yuan's business in the Soviet Union would grow so large.

So, they're going to open a bank in the Soviet Union?
It's too exaggerated.

This also confirms Feng Zhaokun's suspicions about Qin Yuan's influence in the Soviet Union.

Qin Yuan's position in the Soviet Union was now unshakeable.

When He Changqing learned of this news, he was devastated.

On the contrary, Li Chuze's face lit up with a big smile after leaving Sichuan Airlines.

He immediately opened the system's private chat.

[Prince of Yanjing]: Master Jing, the goods have arrived safely, and the higher-ups are very excited! This is of great significance to the development of our aerospace engines. The subsequent two hundred million US dollars have been redeemed and transferred to your overseas account. Please check your account.

Qin Yuan looked at the message, a smile appeared on his face, and he quickly replied.

[I am Jingye]: I hope the rocket engine can help.

[Prince of Yanjing]: Master Jing, congratulations! Opening a bank in the Soviet Union is something very few people can do, haha. How's the progress at the car factory? What's the Volga plant's attitude?

[I am Jingye]: Don't worry, everything is going smoothly. At the Volga plant, we're already on the same page; they're even more proactive than we are. The bank is the key piece for the next move; with it, we can leverage even more capital.

After replying, he immediately asked Yi Xiaodi to check the account.

Sure enough, the huge sum of two hundred million US dollars had quietly arrived in the account.

This injection of funds is like adding the heaviest ballast to a giant ship about to set sail.

Whether it was the initial investment in the new Volga plant, the game with cunning Western capital, or providing liquidity and confidence to the soon-to-open Far East International Bank, it played a crucial role.

Time waits not for us!

Qin Yuan was greatly encouraged and immediately issued the order.

On the one hand, Pan Shiyi was instructed to immediately select the best location in Financial Street and, regardless of cost, complete the renovation as quickly as possible!

On the other hand, a sum of money was given to Binzi and Gangzi.

The propaganda campaign has begun.

He wanted to promote Far Eastern International Bank's annual interest rate of 18% to 25% in the most straightforward and enticing way!

The goal was to let the whole Soviet Union know that a Chinese bank had appeared on Financial Street.

(End of this chapter)