My Realistic Simulation Game

Chapter 243 The Era of Leverage: Rapid Expansion
The rest happened just as Qin Yuan had envisioned.

The Moscow city government voiced its support for the Far Eastern Group and endorsed the Far Eastern International Bank through official media outlets such as Izvestia, Workers' Dawn, and Pravda.

The voices urging the Soviet Central Bank to act suddenly disappeared in large numbers.

This followed the publication of the cross-shareholding plan between Moscow State Bank and Far Eastern International Bank in the newspapers.

The incident caused an uproar. No one expected that Far Eastern International Bank would suddenly receive support from the National Bank of the Capital.

Those accusations of "fraud" and "Ponzi scheme" suddenly become laughable sour grapes in the face of the prestigious reputation of Moscow State Bank.

As for "disrupting financial order"?
With the Moscow city government and the National Bank joining forces to support it, who dares to say this isn't part of the order?

With this double endorsement, public trust in Far Eastern International Bank has not been damaged by the lawsuit; on the contrary, it has reached a new peak.

In front of bank branches across the Soviet Union, lines to deposit money grew even longer.

And it was in this atmosphere that...

The Volgograd Tractor Manufacturing Plant, located on the banks of the Volga River, was in dire straits.

This factory was once the pride of Soviet industry, and its massive facilities and some military production lines were a symbol of its formidable strength.

However, amid the overall economic slump of the alliance, this large factory with tens of thousands of employees also fell into a desperate situation of being unable to pay wages and on the verge of shutting down.

A few days later, a heartfelt plea for help, stamped with a bright red official seal, was solemnly placed on Qin Yuan's desk.

The document was filled with concerns about worker unemployment and social unrest, as well as earnest expectations for Far Eastern International Bank as a "socially responsible enterprise."

Looking at this document, which was practically a "script," Qin Yuan's lips curled into a knowing smile.

He knew that this was the result of a "careful arrangement" by a powerful local official from Catherine's faction.

Now that the stage is set up, how the performance will unfold depends on his acting.

Thinking of this, he called Wang Gongquan in directly and gave him some detailed instructions.

Qin Yuan handed over the documents and said with a faint smile, "Old Wang, you personally lead the group there."

"Remember, you are not a plunderer, but a hero who saves jobs and maintains stability."

"If you are a hero, you should accept the applause and flowers that belong to you with grace."

Wang Gongquan, as an elite figure who entered the domestic business boom, has been working hard for several years.

They already knew exactly how to do it.

Wang Gongquan nodded calmly: "President Qin, don't worry, I know what to do."

Soon after, a top-notch team of lawyers, actuaries, and public relations experts, led by Wang Gongquan, arrived in Volgograd as "saviors."

Wang Gongquan, a foreigner, delivered a speech that was incredibly moving, addressing eager local officials and anxious worker representatives.

"Fellow workers! Comrades!"

"The Far East Group will never sit idly by and watch the nation's pillar industry collapse, nor will it allow tens of thousands of workers to lose their jobs!"

"At the invitation of the Volga City Government, we have decided to provide your factory with a low-interest emergency loan of two billion rubles to help the factory overcome its difficulties, resume production, and save the jobs of everyone present!"

After he finished speaking, the entire hall was silent at first, then erupted in cheers and thunderous applause.

The workers were moved to tears, as if they had seen a savior.

However, hidden within that hundreds-of-pages-long loan agreement, meticulously drafted by a top-notch legal team, was a fatal "devil's clause."

The lender agreed that, in the event that the principal and interest could not be repaid in cash, a Volga-5 tractor manufactured by the factory could be used as collateral, valued at 30% of its market price at the time the contract was signed.

This ratio is shockingly low.

This means that even if the factory operates at full capacity, the value it creates is far from keeping up with the snowballing debt.

This is an elaborately designed, legal financial trap.

The outcome was predictable. Even though the factory briefly resumed production three months after receiving the loan, it quickly fell into difficulties under the dual pressure of high operating costs and unreasonable repayment terms.

At that time, it will be impossible to repay the loan on time.

Then, all that is needed is to send a complaint to the Moscow Arbitration Court.

According to the contract, they could then acquire a 51% stake in the Volgograd Tractor Manufacturing Plant at a very low cost.

This was originally a brilliant plan devised by Potanin, a financier and one of the seven oligarchs, who, with his deep connections within the government and shrewd political skills, designed the plan.

It was precisely because of this plan that Potanin was able to rise to the top and become a leading player among the oligopolies.

Furthermore, Potanin, this brilliant financier, was the only one of the seven oligarchs who was not purged.

The reason is simply because this "loan-for-equity" scheme is too reasonable, legal, and aboveboard.

Living in this era, Qin Yuan didn't mind stealing the future oligarch's "swallowing plan".

After learning that Wang Gongquan had already signed a contract with the Volga Tractor Factory...

Qin Yuan didn't react much, but simply said to Wu Weiguo, "Weiguo, inform Ivan and Binzi to prepare to take over the new heavy industrial assets."

"At that time, tell the factory management that all workers will be retained in their original positions and their wages will be increased by 10%."

"Also, have everyone come to the conference room."

He is about to acquire a giant factory with minimal cost, almost like getting something for nothing, and has even earned the reputation of "saving jobs".

Most of that debt was easily "defaulted" through the legal form of "debt settlement with goods".

Just as the ten banks and outside media were closely watching Far Eastern International Bank, waiting to see how it would run out of funds in the lawsuit.

At Qin Yuan's invitation, a core meeting is underway.

A huge map of the Soviet Union hung on the wall, covered with various symbols.

The meeting room was filled with all the core members of the Far East Group.

"President Qin," Yi Xiaodi said, looking at the financial statements in his hand with a troubled expression.
"The lawsuit filed by the Ten Nations Bank has not been withdrawn yet. Although the support from the municipal government and the National Bank has eased the pressure, the outside world has never relaxed its surveillance of our overt funds."

"Currently, the group is launching multiple offensives simultaneously, carrying out several large-scale acquisitions, and the financial pressure is... enormous."

Qin Yuan stood up, patted the huge map pasted behind him, and said calmly, "Financial pressure? Xiao Di, you're wrong. Our funds should never just sit in the account and rot!"

His gaze fell on Pan Shiyi: "Shiyi, you act immediately. Use all the assets of the Baltic Beer Group, which we just acquired, as collateral to apply for a loan from the Moscow State Bank. Use this money to acquire that large chemical plant in Novosibirsk!"

Before everyone could process the instruction, he turned his gaze to Elena:
“Elena, you are in charge of following up. As soon as the acquisition of the Novosibirsk Chemical Plant is completed, immediately apply for a loan from our own Far East International Bank, using its equipment and factory buildings as collateral.”

"Then use this new money to quickly initiate the acquisition process of the 'Don Savings Bank' in Rostov-on-Don!"

All of these are opportunities offered by those behind the Ekaterina Group.

It is precisely because of these opportunities that the entire Far East Group is operating at full speed, and everyone is taking action.

Qin Yuan's goal was simple: to increase the value of the ruble through continuous circulation and pledging, using other people's resources to lay his own eggs.

In this chaotic era, under the watchful eyes of everyone, Qin Yuan's performance is called "Leverage"!
"Leverage is the most powerful weapon of this era!"

Qin Yuan stared at the areas on the map that were constantly being covered by new markings and muttered to himself.

Through a series of complex related transactions and guarantee chains, Qin Yuan used his initial limited funds as a fulcrum to launch a massive acquisition plan.

Under the guise of "loans in exchange for shares," most aspects of this lavish feast were exposed to the light of day, leaving no room for criticism.

Food, chemicals, finance...

His business empire, far from shrinking amidst the smoke of lawsuits, expanded wildly at an unprecedented rate.

(One more chapter to go)
(End of this chapter)