Sunday, September 25, 2016

Fitch Says Bad Debts
In The Chinese Banking System 
Are 10X Higher Than Official Numbers
Ambrose Evans-Pritchard highlights how China’s debts have caught the worried eye of Fitch .. "Bad debts in the Chinese banking system are ten times higher than officially admitted, and rescue costs could reach a third of GDP within two years if the authorities let the crisis fester, Fitch Ratings has warned. The agency said the rate of non-performing loans (NPLs) has reached between 15pc and 21pc and is rising fast as the country delays serious reform, relying instead on a fresh burst of credit to put off the day of reckoning. It would cost up to $2.1 trillion to clean up this toxic legacy even if the state acted today, and much of this would inevitably land in the lap of the government."
LINK HERE to the article

No comments: