The International Monetary Fund emphasized debt-to-equity swaps or securitization of non-performing loans could mitigate China’s debt obligation.
But the organization reiterated such moves are only applicable if companies are willing to restructure.
The IMF welcomed recent improvements in the Asian country as authorities said they are concentrating on setting excess corporate debt and its effect on banks and the economy.
The institution mentioned China’s debt stands at around 160% of gross domestic product, higher than the GDP of other nations.
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