|Here Comes The Real Stress: Only 27% Of China Project Loans To Be Repaid In Full|
|Bloomberg via ZeroHedge, 23/07/2010 (traduire en Français )|
Chinese banks may struggle to recoup about 23 percent of the 7.7 trillion yuan ($1.1 trillion) they’ve lent to finance local government infrastructure projects
The nation’s five-largest banks, including Agricultural Bank of China Ltd., plan to raise as much as $53.5 billion to replenish capital after the sector extended a record $1.4 trillion in credit last year.
Only 27 percent of the loans to the financing vehicles can be repaid in full by cash generated by the projects they funded, the person said.
China last month ordered local governments to ensure repayment and to concentrate on completing projects already under way. Financing units that fund only public projects and rely on the fiscal income of local governments to repay debt should stop spending, the State Council said June 13. Local governments have also been barred from guaranteeing loans taken by their financing vehicles.
Et je vous renvoie à la chronique de Fiorentino qui se demandait légitimement si les chinois ne vont pas justement utiliser leurs réserves de change pour recaver leurs banques...