14 Mar 2014
China's Premier warns on debt defaults
FXStreet (Bali) - One of the stories getting increasing air-time is recent comments by China's Premier Li Keqiang, speaking after the annual session of the national people's congress, warning the market for what could be a nasty period of bankruptcies.
According to Li, China could be facing a period of industrial bankruptcies as the slow down of the economy leads to a growing number of companies to be unable to pay back their debts.
As Phillip Inman, Economist correspondent at the Guardian reports, citing comments from Li: "Lenders to China's private sector factories they should expect debt defaults as the world's second largest economy encounters 'serious challenges' in the year ahead."
Li Keqiang said: "We are going to confront serious challenges this year and some challenges may be even more complex. China must ensure steady growth, ensure employment, avert inflation and defuse risks while also fighting pollution, among other tasks."
"So we need to strike a proper balance amidst all these goals and objectives. This is not going to be easy," Li added.
According to Li, China could be facing a period of industrial bankruptcies as the slow down of the economy leads to a growing number of companies to be unable to pay back their debts.
As Phillip Inman, Economist correspondent at the Guardian reports, citing comments from Li: "Lenders to China's private sector factories they should expect debt defaults as the world's second largest economy encounters 'serious challenges' in the year ahead."
Li Keqiang said: "We are going to confront serious challenges this year and some challenges may be even more complex. China must ensure steady growth, ensure employment, avert inflation and defuse risks while also fighting pollution, among other tasks."
"So we need to strike a proper balance amidst all these goals and objectives. This is not going to be easy," Li added.