<b>Bad debts just get bigger</b>
|Headline: Bad debts just get bigger
Date: June 2001
Author: Chris Cockerill
The best guess as to the eventual size of Chinese banks’ bad debts is that they will be many times larger than initial official estimates. In a desperate effort to clean up their balance sheets, banks have shifted bad debts to asset management companies. But there’s no sign that these can offload them to new money investors or engineer decent recovery rates. And there’s plenty more to come. Ministers may feel a little queasy when they get the final bill.
Goldman Sachs and UBS Warburg seem satisfied with life, but still haven’t officially raised the banners and popped the champagne in public to celebrate landing such an important prize.