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Central bank says China's debt 'controllable'

Central bank says China's debt 'controllable'

China's central bank says risks associated with debts run up by local Chinese governments are controllable.
The bank's statement comes amid concern China's state-owned banking industry might be hit with a wave of bad loans after disclosures that local governments borrowed heavily to pay for construction and other expenses.
The national auditor reported last month that local Chinese governments have run up debts equal to about one-quarter of the nation's annual economic output.
It said some governments were not able to pay their debts but gave no indication how many might default.