The companies, in turn, are using the new loans to pay back interest on overdue loans that would otherwise be in default.

However, the total overdue loans, even with a smaller number of countries, is a record.

The question is whether China can avoid a recession that would cause a wave of corporate failures, overdue loans at banks and perhaps social unrest.

Demand drafts are also a popular method for lending institutions to attempt to collect on overdue loans.

About 80 percent of the assets were overdue loans acquired after the bank board closed several failing savings and loans.

They are much faster to write off overdue loans and even better at collecting bad debts.

And the bank portfolios of overdue loans have expanded ominously, according to Government reports and analysts' studies.

The article also says our bank "routinely reschedules its overdue loans."

Interest was charged at very high rates for overdue loans of this kind.

It reported higher profits, but investors seized on the fact that the number of overdue loans was up sharply.