November 08, 2024 11:29 GMT
MNI BRIEF: China To Prohibit New Hidden Debt -Finance Ministry
MNI (BEIJING )
China's fiscal authorities will take strict measures to prevent new hidden debt of local governments as it addresses existing debt risks, Minister of Finance Lan Fuan said Friday when answering a question from MNI reporters.
The Ministry of Finance will maintain "zero tolerance" toward new hidden debt, he stressed, noting the authorities will monitor all debt for which local governments have repayment responsibility and ensure the implementation of existing financial support policies to debt resolution for local government funding vehicles.
China's government has space for raising more debt, considering the government debt ratio was just 67.5% as of the end of 2023, compared with 118.2% of the average ratio among G20 countries, he said. (see:MNI: China Domestic Stimulus Needed To Counter Trump-Advisors)
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