One of the asset management corporations (AMCs) set up a decade ago to absorb the non-performing loans (NPLs) of China’s Big Four banks has been allowed to roll over its debts, the Wall Street Journal reported. The Ministry of Finance’s decision to let China Cinda AMC extend the maturity of a 10-year US$36.17 billion bond it sold to China Construction Bank is a reminder that the disposal of the state banks’ bad loans has yet to be properly resolved. Cinda and three other AMCs bought nearly US$205 billion of bad assets at face value from the Big Four banks in 1999 and 2000. By the end of 2006, the AMCs had disposed of US$175.7 billion of the bad assets, but had recovered just US$30.9 billion in cash. This makes it nearly impossible for them to repay the banks when the bonds mature. Analysts suggested that rolling over the bonds is the best short-term solution because it could help shield the banks from the risk of default.