Yet China’s government failed to acknowledge – much less address – the bad debts in a timely manner, instead allowing them to grow even larger. Given that the only way to enable borrowers to avoid default – at least temporarily – has been to provide an ever-increasing amount of liquidity, even banks facing liquidity constraints have remained willing to extend new loans.
但中国政府没有及时认识到——更谈不上解决——不良债务问题，而是放任这一问题不断扩大。由于让借款人避免违约——至少暂时避免——的唯一办法是提供不断增加的流动性，因此，即使银行面临流动性约束，也仍然愿意扩大新贷款。