First the Dodgers, now China. Who exactly is not in debt?
AFP: China cities owe $1.65 trln, some 'may default'
Excessive borrowing by authorities to fund infrastructure and other projects has sparked concerns among China's leadership about the risks the loans pose to the financial stability of the world's second largest economy.
By the end of last year, local governments had 10.7 trillion yuan ($1.65 trillion) of debt, the National Audit Office (NAO) said in a statement, or about 27 percent of China's 2010 GDP of 39.8 trillion yuan.
"The ability of some areas and industries to repay debt is weak and potentially risky," the NAO said.
2 comments:
I wonder who is holding that paper? Seems the World's economy is increasingly looking like a rickety shack built on quicksand ( massive debt).
I wondered the exact same thing.
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