One of China's biggest cities is so cash-strapped it's calling in debts | CNN Business

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In an extremely rare move, Wuhan, the largest city in central China, has publicly demanded that hundreds of local companies repay their debts.

The city’s finance bureau said in a Friday statement published by the official Changjiang Daily newspaper that a total of 259 companies and entities owed it more than 100 million yuan combined. It urged them to pay their overdue debts as soon as possible. The debtors or guarantors include state or privately owned companies, government departments and think tanks, according to official media outlets quoting a screenshot of the newspaper.

Analysts estimate China’s outstanding government debts surpassed 123 trillion yuan last year, of which nearly $10 trillion is so-called “hidden debt” owed by risky local government financing platforms. Due to tightening budgets, some cities have already slashed medical benefits to seniors, which sparked protests. Other vital services are at risk.

 

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China's Wuhan finance regulator urges hundreds of firms to repay debt, local media reportThe financial regulator of China's Wuhan city publicly exposed 259 firms with debt to the government and urged them to immediately pay up, local media reported on Saturday.
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