Skip to comments.Chinese local debt understated by $540 billion: Moody's (The Chicoms aren't doing any better)
Posted on 07/05/2011 7:16:10 AM PDT by SeekAndFindEdited on 07/05/2011 7:25:36 AM PDT by Admin Moderator. [history]
BEIJING (Reuters) - China's local government debt burden may be 3.5 trillion yuan ($540 billion) larger than auditors estimated, putting banks on the hook for deeper losses that could threaten their credit ratings, Moody's said on Tuesday.
Addressing the estimate by China's state auditor that its local governments have chalked up 10.7 trillion yuan of debt, Moody's said it found more potential loans after accounting for discrepencies in figures given by various Chinese authorities.
(Excerpt) Read more at realclearmarkets.com ...
Shocking that growing an economy based on high growth, low margins and a deflated currency would result in bad loans.
Bad accounting is a tradition in China. One day it’s all going to collapse.
Denial. Not just a river in Egypt...