Maturing trust loans backed by local governments rose to 19 billion yuan (US$3.08 billion) in May from less than 10 billion yuan during January or April, Economic Information Daily reported Friday, citing a trust consultant.
May is the start of the peak period for repayment of such loans which are intended for infrastructure development, the report said.
Central and eastern Chinese provinces and coastal regions account for the bulk of the debt, led by Jiangsu with 4.46 billion yuan coming due, followed by Tianjin and Inner Mongolia with 823 million yuan and 699 million yuan, respectively.
Altogether, 330.97 billion yuan worth of infrastructure-related trust products are due this year, sparking fears of defaults.
Trust companies have generally avoided defaults, although one came close in January when it was unable to pay back creditors after lending to a struggling coal miner. It was bailed out at the last minute.
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