China’s Ministry of Finance (MOF) is set to establish a dedicated department to oversee government debt, elevating the management as a multi-year campaign to defuse local government debt risk enters a critical phase, reports Caixin. The new debt department will be created by converting the ministry’s existing policy research department, sources close to the ministry and local finance department officials told Caixin.
Li Dawei, a senior official in the MOF’s budget department who heads the ministry’s China Government Debt Center (CGDC), is expected to lead the new unit, the sources said.
The move will signify a major upgrade to the ministry’s government debt management apparatus. Currently, the function is fragmented, handled primarily by a division within the budget department and the supporting CGDC.