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 countrys top central banker said on Thursday.
The deepening slowdown in the worlds second-largest economy has heightened the need for Chinese authorities to come up with ways to help the countrys 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 Economic Cooperation and Development on Thursday, Zhou Xiao…
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