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China debt crunch

IMF says China needs a way to wind down troubled banks

Fund also warns 'decreasing quality' of corporate debt after annual consulation

In its annual consultation with China, the IMF cites a need for comprehensive restructuring, in line with international best practices, to liquidate weak banks.   © Reuters

SHANGHAI -- The International Monetary Fund on Friday said China should allow lenders overburdened by bad loans to be liquidated so economic growth can be sustained in the medium term.

In a report following its annual consultation with China, the Washington-based IMF acknowledged Beijing's swift response in containing the impact of COVID-19, which allowed for a fast economic recovery.

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