China tells banks to roll over local government loans: FT | Reuters

China tells banks to roll over local government loans: FT | Reuters
"China encouraged banks to lend to local governments for new projects during the financial crisis to buoy the economy, but its provinces and cities now face $1.7 trillion in debts. More than half those loans were scheduled to come due over the next three years, the newspaper said. Banks had started extending maturities for local governments to avoid a wave of defaults, the paper said, citing bankers and analysts familiar with the matter."

Fred Leeb: Is the global house of cards built on a house of cards?