By Pei Li and Kevin Yao BEIJING (Reuters) – A firm controlled by a city government in China’s Inner Mongolia region has failed to make interest and principal payments on nearly 4 billion yuan ($629 million) in off-balance sheet loans, two sources with direct knowledge of the matter said. The rare loan default highlights growing funding strains on Chinese local governments as the central government cracks down on riskier types of financing and rising debt which some outside agencies have warned could lead to a banking crisis. It also points to the tightrope that Chinese leaders must walk as they try to rein in risks to the country’s financial system without undermining economic growth and market stability. Xilinhot Geipaishui Co, a local government financing vehicle (LGFV) controlled by the government of Xilinhot city, has failed to repay loans provided by more than 20 mostly state-run leasing firms, said the sources, who were from two of the leasing companies involved. Chinese regulators are in the third year of a campaign to clamp down on risky lending practices, including the so-called shadow banking sector, squeezing borrowers that have binged on off-balance sheet loans in the past. Outstanding local government debt rose 7.5… Read full this story
- Facebook links APT32, Vietnam's primary hacking group, to local IT firm
- Instant loan Apps fraud gang busted in Hyderabad; 4 members, including a Chinese national, arrested
- Struggling households warned against ‘quick fix’ promises from loan sharks – here are the alternatives
- China keeps promising its African allies that coronavirus vaccines for the continent are a priority. But where are they?
- Scrooge payday lenders target skint Brits with high-interest Christmas loans
- China to push its tech giants to share consumer credit data
- How UK Local Councils Are Sitting on Lockdown Grants as Businesses Struggle to Make Their Ends Meet
- Senate majority gives Biden path to student loan forgiveness
- We can vaccinate ALL teachers, say schools: Heads send Boris a plan for huge seven-day operation to inoculate one million staff during February half term to get schools open within a few weeks
- Senate Passes Bill to Sanction China for Muslim Concentration Camps
China local government firm fails to repay $629 million loans in rare default have 341 words, post on www.euronews.com at May 17, 2018. This is cached page on Law Breaking News. If you want remove this page, please contact us.