Standard Chartered: Local Gov't Financing Platforms Face Insolvency

(Beijing) – The majority of local government financing vehicles cannot repay their debt principle and interest, and are putting an enormous strain on local governments, said Stephen Green, head of Standard Chartered Greater China Research Department, in a forum on September 17.

Green suggested that up to 80 percent of local government loans won't be able to cover the debt service and are currently supported by local governments partly through land revenues.