Local governments in China have been issued the deadline of August by which to complete the shift of all borrowings into bonds, Caixin Global reports, as Beijing looks to wrap-up its debt-swap program and clampdown further on local government liabilities.
The Ministry of Finance initiated a three-year programme in 2015 where local governments were offered government bonds in exchange for their outstanding debt, which had been growing consistently, alongside risk to China’s financial system.
Local government liabilities came to RMB 16.47 trillion ($2.62 trillion) at the close of 2017, with about 90% consisting of government bonds, according to the ministry.
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