In the battle to keep millions of China’s smaller businesses afloat, banks are counting on being allowed another round of exceptions for borrowers falling behind on payments.
The regulator and some lenders have discussed extending loan relief beyond a June 30 deadline for corporates hurt by the pandemic, said people familiar with the matter, asking not to be named as the talks are private. The guidance from Beijing is to offer flexibility on principal and interest payments, the people said. Banks would see a surge in bad loans in the second half without such measures, weakening their ability to keep credit flowing, according to bankers and analysts.
China's debt to GDP has reached 317% in the first quarter of 2020, a new all-time high, up 17% from the fourth quarter of 2019.— Sebastian Sienkiewicz (@Amdalleq) May 17, 2020
China’s central bank governor, Yi Gang, vowed to use policies such as re-lending and loan-repayment extensions to support the virus-stricken economy.— Vinvito 鹰易 (@VinvitoFx) May 17, 2020
Yi reiterated the need for greater counter-cyclical monetary policy, according to an interview published Saturday. pic.twitter.com/b860GTwJCp
Thinking out loud.— Ann Holden (@amandpms) May 18, 2020
What a NICE punch in the gut would THIS be to China, for allowing the Rona to be unleashed on the USA?
Eat the BAD Debt. Mortgage Back Securities are based on FRAUD.
Nuthin' from nuthin' brings nuthin'. https://t.co/uu1xXoY6fT#badpaper
Jed Rothstein’s documentary, The China Hustle, rings the alarm on the need for transparency in an increasingly deregulated financial world by following those working to uncover the biggest heist you’ve never heard of. Watch the trailer below.
Here's an idea: Call it a COVID Default. “The Coronavirus Threatens China's Belt and Road Loans” - The New York Times https://t.co/tAHnRNxRO0— Laura Ingraham (@IngrahamAngle) May 19, 2020