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China’s $1.7 trillion hangover

China’s $1.7 trillion hangover

Up to 40% of China’s $1.7 trillion LGFV loans are at high risk of default. What’s a panicking Beijing to do?

June 2004

Igor Yurgens

by Julian Evans


Igor Yurgens
Igor Yurgens, executive secretary of the Russian Union of Industrialists and Entrepreneurs, is a little wistful. “We used to have regular meetings with president Putin, roundtable discussions, normally in the presence of the prime minister and chief of staff,” he says. “We delivered a message, and usually he listened attentively, then we prepared a draft law if required. Then we’d work through bilateral committees and commissions.”

But invitations from the Kremlin have got scarcer. “There has been a pause since the Khordorkovsky case,” Yurgens says. “We haven’t had any of these roundtable discussions since June last year. We had a chance to express some of our concerns to the president at our congress in October 2003, and that’s it. So now we’re waiting for a new meeting. It’s supposed to take place this month, and we’re hoping the dialogue will be resumed there. But at the moment, it’s pretty tense.”


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