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The rare action from Wuhan's finance bureau on Friday comes as
local governments in China become increasingly pressed by higher
debt and expenses. Wuhan was the epicentre of the COVID-19
pandemic that began in 2019.
The borrowed funds ranged from just over 10,000 yuan to more
than 10 million yuan ($1.45 million), with the total amount
exceeding 100 million yuan ($14.47 million), Yicai reported,
citing a debt collection list jointly published by the regulator
and Wuhan Yangtze River Asset Management Co.
Debtors include district finance bureaus, scientific research
units, state-owned enterprises, units of listed companies as
well as private firms, according to a screenshot of the list
shared by Yicai.
The debtors, their corresponding guarantors and successors were
requested to repay their debts to the asset management firm
immediately after May 26, Yicai reported.
State-owned Wuhan Yangtze River Asset Management Co is a
professional platform responsible for the disposal of various
non-performing assets in the central city, according to its
official website.
It is delegated to recover the above-mentioned borrowed funds
for the government to the maximum extent, Yicai reported.
Like most places in China, Wuhan government's revenue has taken
a big hit in recent years weighed down by COVID, a faltering
economy and a prolonged property crash.
Wuhan's local budget revenue slid 8.5% year-on-year in the first
quarter of 2023, according to data released by local the finance
bureau.
($1 = 6.9121 Chinese yuan renminbi)
(Reporting by Ella Cao and Bernard Orr; editing by Clelia Oziel)
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