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Debt-to-Equity Swap Progressing Smoothly in China
A total of 485 enterprises were given the green light to sign debt-to-equity swaps with financial- asset management companies by July 25 this year, sources with the State Economic and Trade Commission (SETC) said Tuesday.
China started to trial "debt-to-equity" swaps last year, allowing financial-assets management companies to manage bad loans of commercial banks and change part of them for the equity of certain firms.
Official figures show that 601 enterprises were recommended for such trials last year with a combined value of 460 billion yuan. Now 569 of them have been approved, accounting for 94.7 percent of the total.
An official with SETC said the commission is now coordinating with other departments to help settle debt-to-equity swaps for the remaining 11 enterprises as soon as possible.
The other 21 enterprises will not be permitted to go on such trials, he said.
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