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

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

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