The country will raise the local government debt ceiling to 35.52 trillion yuan, enabling the issuance of six trillion yuan in additional special bonds over the next three years to replace hidden debt. Authorities later confirmed that local governments would also have access to an additional four t...
The latter is generally called hidden debt.By February, the amount of outstanding local government bonds totaled 36.22 trillion yuan ($5.25 trillion), according to data released by China's Ministry of Finance."There is no official figure on the total amount of LGFVs' debt. It's estimated ...
BEIJING, March 7 (Xinhua) -- The Ministry of Finance said Thursday that risks of China's local government debts are controllable and measures are being taken to prevent any increase in hidden debts. The debt balances of both China's central and local governments are within the legal limit, ...
Beijing’s latest $1.4 trillion support package shows there is a lot left to be brought onto balance sheet The problem of hidden debt — borrowings by local governments that don’t show up on their official budgets — had been building up for years in China. Photo: AI generated 请务必在总...
BEIJING, Aug. 29 (Xinhua) -- China will contain the growth of hidden debt with active, prudent steps to defuse local debt risk, Finance Minister Xiao Jie said Tuesday. Xiao was briefing lawmakers on a State Council report about the government's budget enforcement this year at a five-day ...
However, almost all of them have become deeply involved in debt finance, mainly in the form of contingent liabilities. Although there will not be a debt crisis in China in the near future, certain risks are hidden in China's local debt. This article therefore recommends China reform its ...
However, the regulators had made it clear that the premise of the commercial banks to issue these mortgages is that the risk is controllable and commercially sustainable, and that new local government hidden debt is strictly forbidden. Since March 2023, the eight pilot cities have been working to...
If LRGs are accumulating excess debt, policymakers prefer that this is on balance sheet, visible, and therefore addressable before problems emerge. LRGs have widely used local government financing vehicles to create hidden debt; we view these vehicles as a subset of the S...
HSBC'S Local Government Debt Restructuring HSBC Greater China Chief economist Qu Hongbin said by mail that China has taken decisive measures. local government The time for debt restructuring is ripe. According to the information of the CBRC, as of June 2010, the debt of China's local governmen...
However, the regulators had made it clear that the premise of the commercial banks to issue these mortgages is that the risk is controllable and commercially sustainable, and that new local government hidden debt is strictly forbidden. Since March 2023, the eight pilot cities have been working to...