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Local Officials Threaten Banks Reluctant to Keep Lending

The Chengde city government has denied ordering local banks to continue lending to local government financing vehicles. Photo: VCG
The Chengde city government has denied ordering local banks to continue lending to local government financing vehicles. Photo: VCG

Keep the loans coming or we’ll report you for corruption.

That’s what officials from the central Chinese city of Changde recently told local banks reluctant to continue lending to local government financing vehicles (LGFVs), Caixin has learned from multiple sources.

Specifically, the officials threatened that the Changde government would report information about alleged misconduct at the banks to the local anti-corruption watchdog, Caixin has learned.

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