China may have $1.3 tn of risky loans: IMF
China may have $1.3 trillion loans extended to borrowers that do not have sufficient income to cover interest payments, according to the International Monetary Fund (IMF). Potential losses on such loans have been estimated at $756 billion (7% of the country’s GDP). Further, loans "potentially at risk" would amount to 15.5% of the total commercial lending, IMF added.