- Prison Planet.com - http://www.prisonplanet.com -
China May Face ‘Massive’ Bank Bailouts After Stimulus Program
Posted By admin On March 14, 2010 @ 4:55 am In Money Watch | Comments Disabled
Bloomberg News 
Sunday, March 14, 2010
March 13 (Bloomberg) — China may be forced to bail out banks that made loans for local-government projects under the unprecedented stimulus program unleashed in 2008, according to Citigroup Inc. and Northwestern University’s Victor Shih.
In a “worst-case scenario,” the non-performing loans of local-government investment vehicles could climb to 2.4 trillion yuan ($350 billion) by 2011, Shen Minggao, Citigroup’s Hong Kong-based chief economist for greater China, said yesterday.
(ARTICLE CONTINUES BELOW)
“The most likely case is that the Chinese government will engineer a massive financial bailout of the financial sector,” said Shih, a professor who spent months researching borrowing by about 8,000 local government entities.
Chinese officials pledged this week to limit the risks posed by the investment vehicles, which circumvent restrictions on local-government borrowing to channel money into stimulus projects. Yan Qingmin, head of the banking regulator’s Shanghai branch, said March 5 that China plans to nullify guarantees provided by local governments for some loans.
Full story here. 
Article printed from Prison Planet.com: http://www.prisonplanet.com
URL to article: http://www.prisonplanet.com/china-may-face-%e2%80%98massive%e2%80%99-bank-bailouts-after-stimulus-program.html
URLs in this post:
 Bloomberg News: http://www.bloomberg.com/apps/news?pid=20601087&sid=aIylss..voRM&pos=6
 Image: http://prisonplanet.tv/signup.html
 Chinese stimulus cash is inflating new stock market bubble, officials warn: http://www.prisonplanet.com/chinese-stimulus-cash-is-inflating-new-stock-market-bubble-officials-warn.html
 The Fed Does It Again: $80 Billion Secretive “Bank Subsidy” Program Uncovered, Providing Bank Loans At 0.01% Interest: http://www.prisonplanet.com/the-fed-does-it-again-80-billion-secretive-bank-subsidy-program-uncovered-providing-bank-loans-at-0-01-interest.html
 US demands China explain cyberattacks in face-to-face talks: http://www.prisonplanet.com/us-demands-china-explain-cyberattacks-in-face-to-face-talks.html
 Renowned Economist Warns Of Severe Depression Without “Massive New Stimulus”: http://www.prisonplanet.com/renowned-economist-warns-of-severe-depression-without-massive-new-stimulus.html
 Stimulus Swindle: Los Angeles Spent $70 Million in Stimulus Funds to Create 7.76 Jobs: http://www.prisonplanet.com/stimulus-swindle-los-angeles-spent-70-million-in-stimulus-funds-to-create-7-76-jobs.html
Copyright © 2013 PrisonPlanet.com. All rights reserved.