BEIJINGChina unveiled a controversial loan-relief plan that could help companies reduce their mounting debt loads but leave banks more strapped for capital.
The continued economic slowdown has made it harder for businesses to repay debts that have been piling up at an alarming rate in recent years as leaders have encouraged lending to revive growth. Analysts estimate that corporate debt now accounts for 160% of Chinas gross domestic product, up from less than 100% in 2008.
The plan announced Monday by the State Council, Chinas cabinet, lets companies give their lenders equity stakes in return for debt forgiven…
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