Understanding China, One Blog at a Time

An American in China

China s Local Government to Default on 30% of Loans

Posted by w_thames_the_d on January 14, 2012


China s local governments will default on thirty percent of their loans. This money came from a huge stimulus package from a few years ago.
If they have trouble paying back the loans, does it mean all the bribes must be returned as well? And if so, how does one go about getting back the two hundred Kauai from the ktv/hostess/student/hooker? Does the communist official have to physically return the favor of hand love for a quick o?

Story excerpt
A railway project in Shanghai. Local governments in China face a hard time repaying funds borrowed for infrastructure projects as part of a plan to stimulate the economy
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20120114000091&cid=1102

2 Responses to “China s Local Government to Default on 30% of Loans”

  1. Brewskie said

    The debt beats were bailed out last year in the tune of 2-3 trillion yuan ($200-$300 billion). Now with the recent downgrade of eurozone nations, plus the fragile US economy and declining Chinese exports, does anyone seriously think China’s got the muster to avoid a hard landing?

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