May 2, 2018 / 1:18 AM / a year ago

Tianjin-govt property firm defaults on two trust loans, creditor says

SHANGHAI, May 2 (Reuters) - A property firm owned by the Tianjin municipal government has defaulted on two trust loans worth a combined 500 million yuan ($80 million), a creditor said - the second known default of off-balance sheet loans by a Chinese local government.

Tianjin Municipal Development Co missed repayments on loans that should have been made before April 14, Guotong Trust said on its website on Sunday.

An employee who answered the phone at the office of Tianjin Municipal Development said she was not immediately able to comment.

Beijing has been trying to rein in local government debt amid concerns that financing vehicles used by local governments throughout China, often for vanity projects that have run up large amounts of debt, may start to default this year.

The first known case of a default this year was by a Yunnan state-owned investment company which later received 2 billion yuan in additional equity capital from the provincial government to repay its loans. ($1 = 6.3325 Chinese yuan) (Reporting by Brenda Goh; Editing by Edwina Gibbs)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below