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