Moody's: Local-government debt threatens Chinese banks

06/20/2013 | Shanghai Daily (China) · Xinhuanet.com (China) · Channel NewsAsia

The possibility that local governments in China will be unable to pay back loans received in recent years presents a serious risk for banks, according to a report by Moody's Investors Service. Lending to local-government financing vehicles accounted for 14% of bank lending in China last year, the credit rating agency said. Among borrowers surveyed for the report, 53% have sufficient funds to meet debt-service obligations this year, Moody's said.

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Shanghai Daily (China) · Xinhuanet.com (China) · Channel NewsAsia

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