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China debt crunch

China province seeks lifeline for debt-ridden infrastructure projects

Guizhou asks for payment extensions and restructuring, with nod from Beijing

Guizhou is a relatively poor province which lacks major companies outside of Kweichow Moutai, a leading maker of spirits. (Photo by Yusuke Hinata)

SHANGHAI -- China's Guizhou Province government has asked lenders for debt relief for state-owned infrastructure investment companies, an unusual step that underscores the debt hidden beneath the surface of the world's second-largest economy.

Shen Yiqin, the Communist Party secretary of Guizhou and top provincial official, summoned executives of financial institutions for a meeting this month regarding loans extended to the poor, landlocked province's local government financing platforms.

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