{"id":1563,"date":"2016-05-09T13:12:15","date_gmt":"2016-05-09T05:12:15","guid":{"rendered":"http:\/\/magicalbits.net\/?p=1563"},"modified":"2016-05-09T13:12:15","modified_gmt":"2016-05-09T05:12:15","slug":"tackling-chinas-debt-problem-can-debt-equity-conversions-help-imfdirect-the-imf-blog","status":"publish","type":"post","link":"https:\/\/magicalbits.net\/?p=1563","title":{"rendered":"Tackling China\u2019s Debt Problem: Can Debt-Equity Conversions Help? | iMFdirect &#8211; The IMF Blog"},"content":{"rendered":"<blockquote><p><a href=\"https:\/\/blog-imfdirect.imf.org\/2016\/04\/26\/tackling-chinas-debt-problem-can-debt-equity-conversions-help\/\"><img decoding=\"async\" class=\"alignnone size-full\" src=\"http:\/\/magicalbits.net\/wp-content\/uploads\/2016\/05\/imfdirectfinal.jpg\" alt=\"\" \/><\/a><\/p>\n<p>Thus, getting the design right is critical:<\/p>\n<ul>\n<li><strong>Debt-equity conversions<\/strong>\u00a0should convert debt only of viable firms in the context of operational restructuring plans for the firms (which may include changing management), at fair value, and with banks holding the equity for a limited period only.<\/li>\n<li><strong>NPL securitization\u00a0<\/strong>should encompass a diversified pool of NPLs, with banks keeping some residual financial interest (\u201cskin in the game\u201d), under a legal and operational framework that will allow owners of distressed assets to force operational restructuring of firms and obtain the best value from those assets.<\/li>\n<li><\/li>\n<\/ul>\n<\/blockquote>\n<p>Source: <em><a href=\"https:\/\/blog-imfdirect.imf.org\/2016\/04\/26\/tackling-chinas-debt-problem-can-debt-equity-conversions-help\/\">Tackling China\u2019s Debt Problem: Can Debt-Equity Conversions Help? | iMFdirect &#8211; The IMF Blog<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Thus, getting the design right is critical: Debt-equity conversions\u00a0should convert debt only of viable firms in the context of operational restructuring plans for the firms (which may include changing management), at fair value, and with banks holding the equity for a limited period only. NPL securitization\u00a0should encompass a diversified pool of NPLs, with banks keeping [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1563","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/magicalbits.net\/index.php?rest_route=\/wp\/v2\/posts\/1563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magicalbits.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magicalbits.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magicalbits.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/magicalbits.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1563"}],"version-history":[{"count":1,"href":"https:\/\/magicalbits.net\/index.php?rest_route=\/wp\/v2\/posts\/1563\/revisions"}],"predecessor-version":[{"id":1577,"href":"https:\/\/magicalbits.net\/index.php?rest_route=\/wp\/v2\/posts\/1563\/revisions\/1577"}],"wp:attachment":[{"href":"https:\/\/magicalbits.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magicalbits.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magicalbits.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}