China to Set Up 5th Debt-Clearing Agency

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00002892-china-to-set-up-5th-debt-clearing-agency/

China plans to set up the country’s fifth debt-clearing agency this month to help an existing quartet of agencies clear bad debt out of the banking system, sources familiar with the situation said.

The Huida Asset and Trustee Co. — to be controlled ultimately by the central bank — has been given the go-ahead to launch in August, an executive familiar with the situation told Reuters, confirming media reports.

Based on regulatory documents obtained by Reuters on Tuesday, Huida would be responsible mainly for disposing of the central bank’s bad debts and assets, similar to what the existing four debt-clearers are in the process of doing for the four largest state banks.

For this complete story, please visit China to Set Up 5th Debt-Clearing Agency.

China to Set Up 5th Debt-Clearing Agency

Unknown Author

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