| Journal Call no. | HC427.92.A1C443 |
|---|---|
| Article Title | Breaking the debt chains. |
| Is Part Of | China analysis ; Nov 1995, p.1-5, illus. |
| Abstract | A major challenge to state-sector reform is freeing state-owned enterprises (SOEs) from interlocking debt chains - described as triangular debt. An example is an auto plant which fails to pay its supplier, a steel plant, because its customer, an SOE, has not paid the auto plant on time. At the same time, the SOE also owes money it borrowed from the same steel plant. This forces the three parties to extend credit to each other, forming complicated debtor/creditor relationships. |