CBA Blacklists 140 Deadbeat Debtors Owing USD3.8 Billion
Song Yikang
DATE:  Jun 26 2018
/ SOURCE:  Yicai
CBA Blacklists 140 Deadbeat Debtors Owing USD3.8 Billion CBA Blacklists 140 Deadbeat Debtors Owing USD3.8 Billion

(Yicai Global) June 26 -- The increase in debt-dodging behavior with the resort to new tricks has posed a new challenge to banks disposing of non-performing assets. Given the default and bank debt dodging events by some debtors of banking financial institutions, the China Banking Association (CBA) has recently joined with 41 banking financial institutions to publish the first announcement on enforcement of creditor's rights against 140 severely discredited debtors to crack down on illegal and dishonest financial conduct.

Such debtors have failed to repay principal and interest of CNY24.96 billion (USD3.8 billion) in total, including the principal of CNY18.15 billion and interest of CNY6.81 billion.

Among them, Yunnan Huijia Import & Export, which the head office of Industrial and Commercial Bank of China (ICBC) reported, owed the greatest debt, amounting to CNY1.59 billion in principal and interest, while Xuanwei Dayu Economic and Trade which -- reported by the head office of Fudian Bank -- owed the smallest in the amount of CNY7.28 million in principal and interest, a CBA staffer said.

This was the first time for CBA and 41 banking financial institutions to jointly issue an announcement on enforcement of creditor's rights against 140 severely discredited debtors, to urge them and their guarantors to fulfill their legal obligations and perform their contracts per law and as agreed, an insider said.

Companies blacklisted by CBA as severely discredited will be frozen off from new credit from banks and other financial institutions nationwide if they fail to pay off the principal and interest owed per law and their agreements. Banks will not open new settlement accounts for them and their legal representatives will be subject to limitations on applications for personal credit cards, said a person in charge of CBA.

Banks affected will take such measures as filing lawsuits, applying for the preservation of property, enforcement, or negative entry in the People's Court's debtors' database to safeguard their legitimate rights and interests, he said.

Editor: Ben Armour

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Keywords:   Discredit Debtors,Banking