In 21 Provinces Nationwide, Local Government Financing Vehicles Are Trapped in a Predicament Where Interest Payments Exceed Main Business Revenue

In 21 of the country's 31 provinces, local government financing vehicles (LGFVs) as a whole have fallen into a state where interest expenses exceed main business revenue; some regions have seen LGFV defaults, and some local governments have begun systematically delaying civil servant and teacher salaries.