Local government financing vehicles (LGFVs) are a tool for governments to borrow money without it appearing on their balance sheets, but it is seen as the same as a government liability by financial markets. Photo: Reuters
Local government financing vehicles (LGFVs) are a tool for governments to borrow money without it appearing on their balance sheets, but it is seen as the same as a government liability by financial markets. Photo: Reuters
Bonds

China hidden local government debt rises to over half of GDP at US$8.2 trillion, Goldman Sachs report says

  • The total debt of local government financing vehicles (LGFVs) rose to around 53 trillion yuan (US$8.2 trillion) at the end of last year from 16 trillion yuan in 2013
  • The report by economists at Goldman Sachs shows the debt is equal to around 52 per cent of gross domestic product

Topic |   Bonds
Local government financing vehicles (LGFVs) are a tool for governments to borrow money without it appearing on their balance sheets, but it is seen as the same as a government liability by financial markets. Photo: Reuters
Local government financing vehicles (LGFVs) are a tool for governments to borrow money without it appearing on their balance sheets, but it is seen as the same as a government liability by financial markets. Photo: Reuters
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