On Nov 8, the Standing Committee of the National People”s Congress approved an increase of 6 trillion yuan ($828 billion) in the local government special bond ceiling to replace outstanding hidden debt — or liabilities of local governments that are not officially recorded.
The increase is designated for swapping outstanding implicit debts, providing local governments with more room to better develop the economy and ensure people’s livelihoods.
Local governments will be eligible for local government special bonds worth another 4 trillion yuan over the coming five years starting this year to finance debt swaps, or 800 billion yuan each year, said Minister of Finance Lan Fo’an.
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