Debt warning for universities

Chinese universities, which boast the largest number of students in the world, are on the brink of a financial crisis because of the rapid growth in enrollment since 1999, deputies to the National People's Congress (NPC) warned yesterday.

To cater to the many students who pursue higher education in the hope of improving their job prospects, universities have to borrow huge sums of money to keep afloat.

"I have heard that there is one university that owes banks 5 billion yuan ($641 million). This means it has to pay 300 million yuan ($38.46 million) in interest every year," said Hu Sishe, an NPC deputy.