Local governments in China are set to get the green light to issue more bonds to step up infrastructure investment due to the Covid-19 pandemic’s impact on the economy and government revenue, reported Caixin.
China’s Ministry of Finance said it would make another early allocation of 2020 special-purpose bond (SPB) quotas worth RMB 1 trillion ($141.4 billion) to local governments, according to a briefing on Monday. This will be in addition to the RMB 1.29 trillion of such debt in two tranches previously approved.
“We are now instructing localities to find the right projects (for the RMB 1 trillion SPBs) as soon as possible, prepare for bond issuance and try to complete it by the end of May,” finance ministry official Wang Kebing said at the briefing.
You must log in to post a comment.