Monday, December 26, 2011

Trouble in PRChina


"China's biggest provincial borrowers are deferring payment on their loans just two months after the country's regulator said some local government companies would be allowed to do so....Hunan Provincial Expressway Construction Group is delaying payment on 3.11 billion yuan in interest, documents governing the securities show this month. Guangdong Provincial Communications Group Co, the second-largest debtor, is following suit. So are two others among the biggest 11 debtors, for a total of 30.16 billion yuan, according to bond prospectuses from 55 local authorities....Vox quoting ZeroHedge

That means that the PRChinese banks (and others) who bought those bonds are not getting either interest-earnings nor (partial) capital returns for at least the next 30-90 days.  Which, in turn, means that the PRC dictatorship will have to rescue those banks, in at least some cases.)

Hmmmnnnnnnnn, again.

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