China will cap the amount of debt local governments can issue and adjust the quota based on economic performance, the finance ministry said on Monday.
China will appropriately expand local government quotas if there is increasing downward pressure in the economy while cutting down the quota when the economy improves, the ministry said in a statement on its website.
China will also comprehensively evaluate the risks of local government debt and give early warnings to local governments who have high debt burdens.
The country has been struggling to control the growth of its massive local government debt pile, officially estimated at 15.4 trillion yuan (US$2.34 trillion) in 2014, without hamstringing the ability of municipalities to invest and support growth.
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China will appropriately expand local government quotas if there is increasing downward pressure in the economy while cutting down the quota when the economy improves, the ministry said in a statement on its website.
China will also comprehensively evaluate the risks of local government debt and give early warnings to local governments who have high debt burdens.
The country has been struggling to control the growth of its massive local government debt pile, officially estimated at 15.4 trillion yuan (US$2.34 trillion) in 2014, without hamstringing the ability of municipalities to invest and support growth.
For Free Signals and other KLSE online updates, click here OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
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