ABC needs US$90b bailout

Agricultural Bank of China is looking to receive massive government capital injections this year to wipe US$90 billion of bad debts off its books, Reuters reported. Vice Chairman Han Zhongqi said the bank had still to be informed of any impending bailout, despite the fact that ABC is expected to finish restructuring by the end of 2006. With the bank reporting that one in four of its loans were sour at the end of last year, any state support is likely to dwarf the US$60 billion spent on removing bad debts held by the other three of the Big Four banks. ABC is keen to find foreign strategic investors once restructuring is complete, with France’s Credit Agricole widely touted as a possible partner. Meanwhile, Dalian City Commercial Bank has announced that it is in talks with several foreign investors interested in purchasing strategic stakes.