Hidden Debt Is A Concern - Securities Times

Policies designed to stabilise growth following the pandemic may increase pressure on local fiscal balances and lead to further risks of hidden debt at regional level, according to analysts interviewed by the Securities Times. The paper said work reports by several regional governments this year have highlighted the added risk and have taken measures to step up supervision and monitoring, such as ensuring debt interest and interest rate cuts are fully accounted for in their budgets. According to one analyst, local debt problems could be solved by moving away from the “land sale financing model” to a more self-sustaining basis founded on industrial and commercial activities.