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China local govt firm fails to repay $629 million loans in rare default - sources

Reuters  |  BEIJING 

By Pei Li and Kevin YaoBEIJING (Reuters) - A firm controlled by a city government in China's Inner Mongolia region has failed to make interest and principal payments on nearly 4 billion yuan ($629 million) in off-balance sheet loans, two sources with direct knowledge of the matter said. The rare loan default highlights growing funding strains on Chinese local governments as Beijing cracks down on riskier types of financing and rising debt, which some outside agencies have warned could lead to a banking crisis. Analysts say officials have stepped in repeatedly recently to steer ...

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First Published: Fri, May 18 2018. 13:35 IST