Rising stress in China
The IMF said there were signs of “widespread and rising corporate stress” among Chinese corporates that were taking longer to pay their bills and struggling to roll over existing debt.
It estimated that around 15.5pc of total commercial bank loans to the corporate sector - worth around $1.3 trillion - were "at risk" of default because companies did not earn enough income to afford interest payments.
Potential bank losses on these loans could be as high as $756bn - or 7pc of China’s GDP. The IMF described this as "substantial".
World faces 'lost year' as policymakers sleepwalk towards fresh crisis, warns IMF
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