The coronavirus has further strained fiscal conditions for local governments struggling with debt. Photo: EPA-EFE
The coronavirus has further strained fiscal conditions for local governments struggling with debt. Photo: EPA-EFE

China debt: local government default risk grows as authorities struggle to repay credit

  • Debt owned by local government financing entities has increased substantially this year as regions borrow money to offset the economic impact of the coronavirus
  • But strained fiscal conditions among local governments have raised questions about their ability to repay years of cheap credit, much of which matures next year

The coronavirus has further strained fiscal conditions for local governments struggling with debt. Photo: EPA-EFE
The coronavirus has further strained fiscal conditions for local governments struggling with debt. Photo: EPA-EFE
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