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MNI: China Local Debt Plan Needs To Be Supplemented - Advisors

Advisors share their outlook for China's LGFV financing.

MNI (BEIJING) - Chinese authorities will provide support in coming years to heavily-indebted local government off-balance-sheet financing vehicles to access more credit and equity funding, and to avoid default, as a CNY10 trillion debt swap programme announced last week excluded the vast bulk of their liabilities, policy advisors told MNI.

The plan announced by Minister of Finance Lan Foan last Friday will increase the local government debt limit by CNY6 trillion and provide an additional quota of CNY4 trillion for local government special bonds, in a drive to clear CNY14.3 trillion of statutory implicit liabilities, or hidden debt”, by 2028.

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MNI (BEIJING) - Chinese authorities will provide support in coming years to heavily-indebted local government off-balance-sheet financing vehicles to access more credit and equity funding, and to avoid default, as a CNY10 trillion debt swap programme announced last week excluded the vast bulk of their liabilities, policy advisors told MNI.

The plan announced by Minister of Finance Lan Foan last Friday will increase the local government debt limit by CNY6 trillion and provide an additional quota of CNY4 trillion for local government special bonds, in a drive to clear CNY14.3 trillion of statutory implicit liabilities, or hidden debt”, by 2028.

Keep reading...Show less