Understanding China's Role in the Developing World Debt Crisis (Part 2)
The China in Africa Podcast
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China's Reluctance to Nominal Haircut
The Chinese banking sector reform of the last two or three decades was to impose much harder constraints on bank lenders. If a loan goes bad, they go with the loan officer, even if he or she changes in progress. This feature applies to the next bank and the China development bank as well. So that explains part of their strong reluctance to nominal haircut at the same time.
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