Hebei Zombie Credit Guarantee

Hebei Financing Investment Guarantee (HFIG) (link goes to prior coverage) is still not settled more than one year after going bust. Creditors are demanding action by the Hebei government as thousands of guaranteed loans and trust products are affected.

Reuters: Creditors urge China's Hebei to act on debt crisis

In a "urgent letter" to the province's top bosses dated July 12, the financial institutions bemoaned the lack of action, warning that the crisis continues to worsen.

"(We) haven't seen any actions being taken to resolve Hebei Financing's crisis", financial institutions said in the letter, seen by Reuters, that was sent to the province's Communist Party secretary and governor.

Creditors urged the provincial government to ask the custodian company, state-owned Hebei Construction & Investment Group Co, to a provide credit guarantee to allow the restructuring of Hebei Financing-related debt.

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