China's $118-bn lending push to curb impact of Covid-19 runs into trouble

Some banks have been left trying to unwind loans or raise agreed interest rates, said two bankers

China's efforts to pump 800 billion yuan (101.6 billion pounds) into companies through cheap bank loans to counter the economic impact of the virus outbreak have run into a snag: bureaucratic confusion.

Communication issues, confusing eligibility criteria and different lending standards have caused a muddle between officials over which companies qualify and at what rate, according to seven sources with direct knowledge of the situation. That has left some banks at risk of future soured loans after offering finance to companies who turned out ineligible for subsidies, or holding loans which have already needed to be renegotiated.

While China has frequently targeted