The IMF has welcomed decisions by China, India, and the Paris Club — led by Japan, to help Sri Lanka restructure its debt. But who will be taking the haircuts when future global loans go bad?
"Structuring financing deals as investments instead of loans frees up bank capital and makes it easier to extend loan deadlines or new credit to borrowers. The strategy has been especially popular at small and midsize banks, said executives and analysts."
"Even as China cracks down on outflows, its state companies find novel ways to fund far-flung deals for natural resources.”
"Electricity use, rail cargo volume and bank loans — combined in a weighted average known as the Bloomberg Intelligence Li Keqiang Index — are collectively at the highest level in three years."