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WASHINGTONChina is planning a debt-for-equity swap program that could provide large companies mired in
overcapacity a way to reduce their debt burdens, the country’s top central banker said on Thursday.
The deepening slowdown in the world’s second-largest economy has heightened the need for Chinese authorities to come
up with ways to help the country’s heavily-indebted corporate sector deleverage. A plan in the works involves enabling
banks to exchange bad loans for equity in companies they lend to.
Speaking at a small-business financing event hosted by the Organization for Economi…
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