China unveils steps to tackle ‘hidden’ debt of local governments

2024.11.08 03:44

BEIJING (Reuters) – China will allow local governments to issue 6 trillion yuan ($838.77 billion) in bonds to swap for off-balance sheet or “hidden” debt over three years, an official said on Friday.

China’s top legislative body, the standing committee of the National People’s Congress (NPC), approved a bill on raising ceilings on local government debt during a meeting from Nov. 4 to 8, said Xu Hongcai, vice chairman of the financial and economic affairs committee of the NPC.

Xu, who made the remarks at a press conference in Beijing, added that the debt swap would help resolve local debt risks.

($1=7.1533 renminbi)

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