But Fitch thinks that ratio is already closer to 6%, on a less forgiving view of loans to the financing vehicles of local governments.
It added that policymakers need to put in place measures to "closely monitor and control the risks related to borrowing by local entities, especially local government financing vehicles".
But it is loans made to Local Government Financing Vehicles (LGFVs), special companies set up to fund ambitious and often redundant infrastructure projects, that have attracted the greatest attention.
They have borrowed not only for their own direct purposes to build public works and housing but also for enterprises known as local-government financing vehicles, whose businesses often have a low rate of return.
Over the past two decades, emerging market countries and companies have increasingly looked to the private capital markets (i.e. the issuing of stocks and bonds) for larger-scale funding and away from their traditional reliance on syndicated commercial bank loans and Western government financing vehicles.
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"The bond-market investigation is not likely to have a negative impact on companies' ability to raise funds in the short term, but some high-risk borrowers, such as local-government financing vehicles, could see their borrowing costs go up, " said Zhu Chaoping, head of research at ChinaScope Financial, a Hong Kong research and data firm.
Through its Capital and Fleet Services businesses, GE also is able to provide the financing, vehicles and fleet management knowhow to support the widespread adoption of EV technology.
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Despite record-low interest rates and 0% financing for certain vehicles, both General Motors and Ford suffered in September.
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While September revealed a slowdown, record-low rates and cheap money being funneled in the Bernanke and the Federal Reserve has allowed the industry to deliver cheap financing for its vehicles to incentivize demand.
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Ally Financial in Detroit, Mich. is introducing an innovative new-car financing program that allows owners to sell their vehicles back to Ally at a guaranteed price after 48 months.
One option reportedly being considered is to sell assets to special vehicles jointly owned by private investors and the government, with the latter financing part of the sale to make the assets more attractive.
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It is now replacing its U.S. fleet with purchased vehicles under the ABS (Asset-Backed Security) facility that provides it access to cheaper vehicle financing.
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