Over the last few weeks, there have been reports that Yingli Green Energy will receive about 3.3 billion yuan ($500 million) in loans from the state-backed China Development Bank and the government of its home city of Baoding, as the beleaguered solar firm tries to reorganize its balance sheet. The support would mark one of the most significant interventions by the state in recent years to shore up a struggling solar company, considering that the government largely allowed players such as Suntech Power and LDK Solar to go bankrupt after they failed to service their debts. So why exactly is the government stepping in to help Yingli and what could the support mean for the company?
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