China's corporate debt problem needs urgent attention: IMF
It, however, notes the authorities are focusing on the problem and its impact on banks and the economy
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Tokyo
CHINA'S problem of its high and rising corporate debt needs to be addressed as a matter of urgency to "avoid serious problems down the road", an International Monetary Fund (IMF) document issued on Wednesday suggested in a blunt assessment of the situation.
Corporate debt in China has risen to about 160 per cent of gross domestic product, "which is very high compared to other, especially developing, countries", IMF staff said in a blog report. The Fund's April 2016 Global Financial Stability Report looked at the issue from the viewpoint of commercial banks and resulting vulnerabilities, the blog noted.
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