By David Lawder
WASHINGTON, April 26 (Reuters) – China’s massive corporate debt problem could be eased through debt-to-equity conversions or securitization of non-performing loans, the International Monetary Fund said on Tuesday, but only if these apply to viable firms that undergo restructuring.
The IMF said in a blog posting on its website that it welcomes recent statements by Chinese authorities that they are focusing on the problems of excessive corporate debt and the resulting burden on banks and China’s economy.
It noted that China’s corporate debt now stands at about 160 percent of gross domestic product, which is high compared with many other cou…
Read the full article at: http://finance.yahoo.com/news/debt-equity-swaps-could-help-015934802.html