Off the wire
• French industrial output falls by 0.9 pct in April  • Tajikistan, Pakistan pledge to further ties  • Kazakhstan FA invites Uganda for international friendly  • Commentary: Cultural exchanges at Milan Expo exemplify importance of "community of common destiny"  • Weather forecast for world cities -- June 10  • 8 Australian veterans return to WWII battlefields in Brunei after 70 years  • Weather forecast for major Chinese cities, regions -- June 10  • Urgent: Burundi delays presidential, parliamentary election  • China approves new infrastructure projects  • FIFA suspends 2026 World Cup bidding  
You are here: 　 Home

1st LD-Writethru: China announces new debt-swap quota for local gov'ts

Xinhua, June 10, 2015 Adjust font size:

China on Wednesday moved to regulate local government debt with the launch of another 1 trillion yuan (163.9 billion U.S. dollars) debt swap deal, the second time it has done so this year.

The Ministry of Finance (MOF) launched a 1-trillion-yuan debt swap deal in March.

Two trillion yuan has been channeled into the deal.

The decision was based on results from the National Audit Office (NAO) in 2013 that found about 1.86 trillion yuan of local government debt would mature in 2015, according to a source with the MOF who declined to be named.

Qiao Baoyun, a professor with the Beijing-based Central University of Finance and Economics, said debt swaps can relieve local governments' burdens and balance the relationship between debt management and stable growth.

Bai Chong'en, a professor at Tsinghua University, said the swaps will not change the overall liquidity in the market.

China is struggling to rein in local government debt caused by unbridled borrowing during an investment and construction binge since the global financial crisis in 2009.

The NAO said that local government debt stood at around 10.9 trillion yuan by the end of June 2013. Endi