Despite much criticism of China's tardiness in clearing up its enormous $307 billion non-performing loan problem, a recent report by global accounting and consulting firm Ernst and Young suggest that the situation is not as dire as often reported.
According to the 'Global Nonperforming Loan report 2004' Ernst and Young consultants indicate that China has seen a gross disposal of $200 billion since the establishment of four asset management companies in 1999. Of that 200 billion, 107 billion are still with the AMCs, meaning that a net $93 billion has been resolved through 'restructuring, reclassification, repayment, or write-offs.'
The last figure is the more significant one,...
