China Economic Review
Charting China’s changing economic terrain · Since 1990

Hidden debts 'under control'

March 31, 2002

The governor of the people’s Bank of China, Dai Xianglong, told the National People’s Congress that China’s debts, though rising, were still under control, South China Morning Post reported. He said that the budget deficit remained at under 3 per cent of GDP – close to what the International Monetary Fund considers an unsafe level. He added that, although China also had hidden debts in the form of pensions fund deficits, money owed by local governments and non-performing loans, combined they amounted to no more than 60 per cent of GDP.

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