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China Central Bank Admits It Has A Debt Problem, Warns No Easy Solution
zerohedge.com / by Tyler Durden / Mar 10, 2017 11:38 AM
It’s a well-known risk, perhaps the biggest to the global financial system: China’s debt is too high, with estimates ranging from 250% to 300% of GDP per the IIF:
And while China has largely ignored, or avoided, discussing the troubling implications of its unprecedented debt load, this changed today when the head of China’s central bank, Zhou Xiachuan finally admitted that it has a debt “problem” saying that corporate debt levels are too high and that “it will take time to bring them down to more manageable levels”, underlining what has become the defining battle to put the world’s second-largest economy on a more sustainable footing: keeping GDP growing at 6.5% (or above) while injecting trillions in new debt.
“Non-financial corporate leverage is too high,” PBOC Governor Zhou Xiaochuan told reporters at a news conference on the sidelines of the annual parliament session.
The post China Central Bank Admits It Has A Debt Problem, Warns No Easy Solution appeared first on Silver For The People.
Source: http://silveristhenew.com/2017/03/10/china-central-bank-admits-it-has-a-debt-problem-warns-no-easy-solution/
