China’s weaker local government financing vehicles (LGFVs) are facing higher risks of default and missed payments amid rising financing costs, a wave of maturities and a property crisis that is taking a toll on local authorities’ balance sheets, according to analysts.
India called on China to be willing to take losses on loans to struggling economies, and asked the world's biggest bilateral creditor to developing countries to avoid taking positions that would block relief for nations such as Zambia and Sri Lanka.
The total interest paid on bonds at local levels in China last year increased by nearly 21 per cent from 2021 as Beijing ramped up efforts to stabilise the nation’s economy, official figures show.