Amadeusz Juskowiak

Chinese banks to issue more bonds official says

Chinas state and collective firms do not have enough cash to operate imported equipment so banks will issue more bonds to raise funds a Chinese bank official was quoted by the China Daily as saying

Xie was quoted as saying the present cash shortage means some state firms do not run at full capacity and are inefficient The central government does not have enough money to meet their needs

The paper said Reliable sources disclosed that the country is running a budget deficit It gave no figure

Xie said her bank sooner or later will have to punish the many firms that have failed to repay loans made to them over the past two years at high interest rates The bank financed the loans by issuing two billion yuan of bonds but she gave no other details

REUTER