(Reuters) -China is preparing to tackle the significant backlog of unpaid bills owed by local governments to the private sector, estimated by some at over $1 trillion, Bloomberg News reported on Thursday.
The government is considering asking state lenders and policy banks including China Development Bank to lend to local authorities so they can make the payments in arrears, the report said, citing people familiar with the matter.
Reuters could not immediately verify the report.
(Reporting by Ruchika Khanna in Bengaluru; Editing by Kim Coghill)
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