The issuance of treasury bonds should...>

CHINA PRESS: The issuance of treasury bonds should be the main method for local

governments to raise new funding and so alleviate the need for illegal

financing, the Economic Information Daily said in a commentary Tuesday. The

recent rapid expansion of financing by local governments is due to their need to

invest in local infrastructure, the costs of which are difficult for them to

repay given the lack of support from fiscal revenue, the report said.  This has

prompted local governments to use illegal financing methods. The newspaper

stressed preventing illegal local government financing does not mean abandoning

infrastructure improvements nor giving up on local governments' function in

boosting economic growth, but rather redirecting to financing to legal methods,

such as issuance of treasury bonds. (Economic Information Daily)