A program has begun in China that allows local governments to exchange “hidden debt” for low-interest bonds. The aim is to reduce the risk of public off-the-books debts, including debts of financing vehicles (LGFVs) called “Local Financing Platforms.”
On the 27th, the government-affiliated newspaper Shanghai Securities News reported that the Inner Mongolia Autonomous Region had a total of 66.3 billion yuan (approximately 1.35 trillion yen).refinancing general bondsCiting official documents, it reported that three books had been published. The redemption period is 3-7 years.
Bloomberg previously reported that the central government would allow provincial-level local governments to raise about 1 trillion yuan through bond issuance to repay off-balance-sheet debt.
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Original title:China Starts Local Government Debt Swap Program (excerpt)
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2023-09-27 09:18:59