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Official: China should improve local govt debt risk controls - official

Official: China should improve local govt debt risk controls - official

BEIJING, January 15 (Reuters) - China should keep improving its institutional systems to prevent and resolve local government debt concerns, according to the country's vice finance minister.

China should balance investment promotion and prevention of risks, including in determining the scale of new government debt, and prevent excessive debt growth from affecting fiscal activities, according to Xu Hongcai.

During the summer, the ministry will work together with the National Development and Reform Commission to improve the management of special bonds in investments, including prohibitions on funding vanity projects and projects that are not in the public interest, according to the ministry.

China will also act on illegal and irregular debt raising and back-door debt financing, according to the economist.

China intends to accelerate the issuance of local government special bonds this year to boost investment and support a slowing economy.

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