Resolving China corporate debt problem /
Maliszewski, Wojciech,
Resolving China corporate debt problem / prepared by Wojciech Maliszewski, Serkan Arslanalp, John Caparusso, José Garrido, Si Guo, Joong Shik Kang, W. Raphael Lam, T. Daniel Law, Wei Liao, Nadia Rendak, Philippe Wingender, Jiangyan Yu, and Longmei Zhang. - 1 online resource (43 pages) : color illustrations - IMF working paper, WP/16/203 1018-5941 ; . - IMF working paper ; WP/16/203. .
"October 2016." At head of title: International Monetary Fund, Asia and Pacific Department.
Includes bibliographical references (pages 39-40).
Cover; Contents; I. Introduction; II. How Significant is the Problem?; III. What is Behind the Rapid Credit Growth?; IV. Charting the Way Out; A. Authorities' Plans; B. Comprehensive Strategy; C. Elements of the Comprehensive Strategy; V. Supportive Measures; A. Enhancing the Legal Framework; B. Easing the Transition; C. Facilitating Market Entry; D. Strengthening Fiscal Discipline for Local Governments; VI. Illustrative Scenarios; VII. Conclusion; Table; 1. Resolving Zombie Companies across Selected Provinces; Figures; 1. Credit Boom and Adjustment: Regional Impact. 2. China Deleveraging ScenariosAppendices; I. Using a Pilot Program to Restructure State-Owned Enterprises; II. Modalities of Debt Restructuring; III. China's 1998-2003 Previous Restructuring Experience; IV. Recent Near-Default Cases; V. Corporate Restructuring in Central and Eastern Europe; VI. Korea's Experience with Corporate and Debt Restructuring; VII. Estimating the Impact of Restructuring; VIII. Managing Local Government Debt-International Experiences; IX. Projecting Growth and Credit under Different Scenarios; References.
Corporate credit growth in China has been excessive in recent years. This credit boom is related to the large increase in investment after the Global Financial Crisis. Investment efficiency has fallen and the financial performance of corporates has deteriorated steadily, affecting asset quality in financial institutions. The corporate debt problem should be addressed urgently with a comprehensive strategy. Key elements should include identifying companies in financial difficulties, proactively recognizing losses in the financial system, burden sharing, corporate restructuring and governance reform, hardening budget constraints, and facilitating market entry. A proactive strategy would trade off short-term economic pain for larger longer-term gain.
9781475545289 1475545282 147554538X (ebk) 9781475545388 (electronic bk.)
10.5089/9781475545289.001 doi
967847 MIL
Corporate debt--China.
Credit--China.
Financial risk management--China.
Corporate debt.
Credit.
Financial risk management.
Sociétés--Dettes--Chine.
Crédit--Chine.
Finances--Gestion du risque--Chine.
China.
Electronic books.
Electronic books.
HG3881.5.I58 / W67 No. 16/203eb
658.1526
Resolving China corporate debt problem / prepared by Wojciech Maliszewski, Serkan Arslanalp, John Caparusso, José Garrido, Si Guo, Joong Shik Kang, W. Raphael Lam, T. Daniel Law, Wei Liao, Nadia Rendak, Philippe Wingender, Jiangyan Yu, and Longmei Zhang. - 1 online resource (43 pages) : color illustrations - IMF working paper, WP/16/203 1018-5941 ; . - IMF working paper ; WP/16/203. .
"October 2016." At head of title: International Monetary Fund, Asia and Pacific Department.
Includes bibliographical references (pages 39-40).
Cover; Contents; I. Introduction; II. How Significant is the Problem?; III. What is Behind the Rapid Credit Growth?; IV. Charting the Way Out; A. Authorities' Plans; B. Comprehensive Strategy; C. Elements of the Comprehensive Strategy; V. Supportive Measures; A. Enhancing the Legal Framework; B. Easing the Transition; C. Facilitating Market Entry; D. Strengthening Fiscal Discipline for Local Governments; VI. Illustrative Scenarios; VII. Conclusion; Table; 1. Resolving Zombie Companies across Selected Provinces; Figures; 1. Credit Boom and Adjustment: Regional Impact. 2. China Deleveraging ScenariosAppendices; I. Using a Pilot Program to Restructure State-Owned Enterprises; II. Modalities of Debt Restructuring; III. China's 1998-2003 Previous Restructuring Experience; IV. Recent Near-Default Cases; V. Corporate Restructuring in Central and Eastern Europe; VI. Korea's Experience with Corporate and Debt Restructuring; VII. Estimating the Impact of Restructuring; VIII. Managing Local Government Debt-International Experiences; IX. Projecting Growth and Credit under Different Scenarios; References.
Corporate credit growth in China has been excessive in recent years. This credit boom is related to the large increase in investment after the Global Financial Crisis. Investment efficiency has fallen and the financial performance of corporates has deteriorated steadily, affecting asset quality in financial institutions. The corporate debt problem should be addressed urgently with a comprehensive strategy. Key elements should include identifying companies in financial difficulties, proactively recognizing losses in the financial system, burden sharing, corporate restructuring and governance reform, hardening budget constraints, and facilitating market entry. A proactive strategy would trade off short-term economic pain for larger longer-term gain.
9781475545289 1475545282 147554538X (ebk) 9781475545388 (electronic bk.)
10.5089/9781475545289.001 doi
967847 MIL
Corporate debt--China.
Credit--China.
Financial risk management--China.
Corporate debt.
Credit.
Financial risk management.
Sociétés--Dettes--Chine.
Crédit--Chine.
Finances--Gestion du risque--Chine.
China.
Electronic books.
Electronic books.
HG3881.5.I58 / W67 No. 16/203eb
658.1526