May 25, 2016 12:41 PM

Commercial Debt Dodgers Pressure China's Banks

By staff reporters Wu Hongyuran and Zhang Yuzhe

Workers check the quality of steel products at state-owned Dongbei Special Steel Group Co.in the northeastern province of Liaoning. The company defaulted on 700 million yuan worth of debt earlier in May

(Beijing) – Bankers nationwide are rushing to call loans issued to state-owned and private companies to avoid a rising tide of debt dodging that's not only legal but often supported by the government.

Some companies in the past year have frustrated creditors by declaring bankruptcy, while companies in the steel manufacturing and coal mining industries have used asset restructuring projects to avoid debt obligations.