The actual level of off-balance-sheet Chinese local government debt could be several times more than what is publicly disclosed and range as high as 30 trillion yuan to 40 trillion yuan, or about $4.34 trillion to $5.78 trillion, S&P Global Ratings analysts say in a report.
"That's a debt iceberg with titanic credit risks," the analysts say, estimating that the ratio of all government debt to GDP was 60 percent last year.
As a result, S&P Global Ratings expects authorities will allow more defaults in local government financing vehicles.
https://www.cnbc.com/2018/10/16/china-hidden-local-government-debt-could-be-6-trillion-sp.html
Submitted October 16, 2018 at 06:31AM by NineteenEighty9 https://ift.tt/2IZVvS1
