Han Xiao, a lawyer with Beijing Kangda Law Firm, told International Financial News that if a creditor tries to pursue the bankruptcy of its debtor, they need to go through legal procedures, including providing proof relating to the claim and insolvency of the company.

Amid the turmoil of balance sheet insolvency, certain debtors may even don a cloak of secrecy, clandestinely shifting assets and eluding their debts.

"Asia is now the largest debtor in the world, and several countries are at high risk of debt distress," said Srinivasan, pointing out that Asia's share of global debt has increased from 25 percent before the COVID-19 pandemic to 38 percent now.

China calls on all parties to follow the existing G20 consensus, respect the independent decisions of debtor countries and promote steady progress of relevant work in a practical manner, said Liu.

Any debt risk can be shared fairly among debtors and creditors, and the principle of "no bailout from the central government" should be strictly adhered to.

Any debt risks will be fairly shared among debtors and creditors, and the principle of "no bailout from the central government "will be strictly adhered to, the ministry said.

Any debt risks would be fairly shared among debtors and creditors, and the principle of "no bailout from the central government "will be strictly adhered to, the ministry said.

Any debt risks will be fairly shared among debtors and creditors.

In addition, the regulators have required commercial banks to focus on assessing debtors' ability to perform their contractual obligations while banks are classifying risks of non-retail banking financial assets.

For example, if more than 10 percent of the amount of money that a debtor owes to a bank is classified into nonperforming assets, all of the money that the debtor owes to the bank should be classified into NPAs.

Any debt risks would be fairly shared among debtors and creditors, and the principle of "no bailout from the central government" will be strictly adhered to.

Risks will be fairly shared among debtors and creditors, and the principle of no bail-out from the central government will be strictly adhered to.

The assets include debtors' projects that have entered bankruptcy proceedings, assets such as principal and interest that have been overdue for more than 90 days, and loans which are past due again after payments on loan principal and interest have already been deferred due to the impact of COVID-19.

On the other hand, stakeholders, including shareholders and debtors, should also fulfill contracts according to laws and regulations, and not to escape from any debt obligations.

The ministry pledged to endorse the G20 Action Plan, in response to the requirements of poor debtor countries, and start bilateral talks on the temporary debt repayment suspension.

The suspension of debt repayments should respect and balance the willingness and interests of both creditor and debtor countries, as well as other stakeholders, the statement said.

After the establishment of a personal bankruptcy system, the debtor will be given a chance at a new beginning, which is conductive to the optimal allocation and efficient use of resources.

And the creditors, debtors and liquidators also need to strengthen their own legal awareness," Wang added.

To get the debt liability exemption, the debtor has to repay part of the debt as a condition and the debtor's economic life will be restricted for about three to five years after the end of bankruptcy proceedings, Xu told a reporter from Beijing Business Today.

That means the government does not intervene in swap programs, and the conversion prices should be negotiated by banks, debtors and implementing agencies.

It will also deal with bankruptcy cases where financial institutions are the debtors and administrative cases with financial regulators as defendants, according to the document.

Risks could rise unexpectedly, Liu recalled that on one occasion, her bank had lent 20 million yuan to a local businessman who got addicted to gambling and subsequently defaulted, forcing the bank to turn to the guarantor to persuade the debtor to try to revive his failed business and pay up.

China launched a new round of debt-to-equity swap programs in 2016, aiming to reduce debt ratios by allowing creditors to take equity stakes in place of debt repayments, to avoid pushing debtors into default.

BEIJING — China has issued a notice advising authorities across the country to establish online platforms to expose debtors who fail to honor their credit obligations.

To tackle NPLs and get credit risk under control, banks resorted to restructuring of troubled debtor industries, write-offs and transfers.