Local Government Bonds
Hi! Welcome to “About China”!
In today’s program, we will talk about “local government bonds”.
Premier Li Keqiang has pointed out that we will make effective use of local government bonds in the 2019 Report on the Work of the Government. This year, 2.15 trillion yuan of special local government bonds will be issued, an 800 billion yuan increase on last year. This is designed to both provide funding for key projects and create conditions for better forestalling and defusing local governments’ debt risks. The scope of use for special local government bonds will be moderately expanded. We will continue the issuance of some local government bonds to replace outstanding debts in order to reduce the interest payment burdens of local governments. We will encourage the adoption of market approaches to solve the issue of maturing debts on financing platforms and make sure that projects financed by such debts are not stopped half way.
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