CHINA TOPIX

China Introduces Debt-for-Equity Plan for Reducing Corporate Debt Pile

S. Rina   |

Oct 11, 2016 07:54 PM EDT

China announced a new plan for tackling the problem of its growing corporate debt pile. The proposed bad-loan relief program lets banks swap their non-performing loans for equity in the debtor companies. The guidelines of which were released on Monday and are applicable only to high quality companies facing short-term difficulties.