So-called hidden debt refers to funds raised by government-related entities, like local-government financing vehicles, to pay for infrastructure spending and other public projects. Photo: Xinhua
China’s local governments seen to be quietly defusing ‘hidden debt’ bomb
- Local governments’ finances shows a difference of 668 billion yuan (US$103 billion) between refinancing bonds sold in the first half of the year and the amount repaid
- Local authorities issued 1.9 trillion yuan (US$293 billion) of refinancing bonds in the first half of the year, while only repaying 1.2 trillion yuan in official bonds
So-called hidden debt refers to funds raised by government-related entities, like local-government financing vehicles, to pay for infrastructure spending and other public projects. Photo: Xinhua
