2,100 banks could be affected as China looks to curb the bad loan environment of its rural communities, Bloomberg reported.
  • GreatAlbatross@feddit.ukEnglish
    0·
    10 months ago

    If they’re external creditors, it makes it a lot easier for them to go “nope, not paying that, what are you going to do?” when they’re one massive state-backed monolith.

    • gravitas_deficiency@sh.itjust.worksEnglish
      01·
      10 months ago

      Sovereign default is a thing. It’s a short term solution that can get a country out of immediate danger, but has very negative long term effects.