Posted 1 year ago on Dec. 19, 2011, 5:46 p.m. EST by badconduct
from Ottawa, ON
This content is user submitted and not an official statement
There are 6,576 of such entities across China, according to a June count by the National Audit Office, which put their total debt at 4.97 trillion yuan. That means the 231 borrowers studied by Bloomberg have alone amassed more than three-quarters of the overall debt. The fact so few of the companies have accumulated that much debt suggests a bigger problem, says Fraser Howie, the Singapore-based managing director of CLSA Asia-Pacific Markets who has written two books on China’s financial system. “You should be more worried than you think,” he said of Bloomberg’s findings. “Certainly more worried than the banks will tell you.
It was expected that China bail out all of these other countries, but apparently they are under reporting their own infrastructure debts (which means many of their projects will most likely end up incomplete.
It almost seems like all of these nations should get together and make a write-off, debt for debt deal. That should balance the economy and debt to GDP amounts quickly.