Moody's: Local-government debt threatens Chinese banks

06/24/2013 | Shanghai Daily (China) · Xinhuanet.com (China) · Channel NewsAsia

The possibility that local governments in China will be unable to pay back loans 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 last year, and 53% of borrowers have sufficient funds to meet debt-service obligations this year, Moody's says.

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