Inner Mongolia To Repay Arrears Using Refinancing Bonds

Inner Mongolia plans to issue CNY66.32 billion of refinancing bonds to repay corporate accounts in arrears that the government guaranteed before 2018. This is the first time a local government has used refinancing bonds to pay off debt in arrears, compared to the previous use of repaying the principal of maturing local-government bonds as well as swapping out existing local implicit debts. This shows that the Politburo's “basket of plans” to address local government indebtedness includes, not only resolving off-balance borrowings via local-government financing vehicles, but also repaying arrears. (Source: Caixin)