China vows to contain local gov't debt risk

0 Comment(s)Print E-mail Xinhua, July 28, 2017
Adjust font size:

China pledged more proactive fiscal policy during the rest of 2017, while vowing to prevent and defuse local government debt risk as well as clamp down on illegal debt issuance, a finance official said Friday.

China will maintain the continuity and stability of its policies, focusing on advancing supply-side structural reform to ensure stable and healthy development of the economy, Liu Wei, vice minister of finance, told a press conference.

Liu said China's local government debt risk remains generally under control and the country will tighten regulation on local government debt issuance and financing activities.

Outstanding local government debt stood at 15.86 trillion yuan (about 2.4 trillion U.S. dollars) as of June 30, slightly higher than 15.32 trillion yuan at the end of 2016 but below this year's government-targeted ceiling of 18.82 trillion yuan.

China has unveiled a slew of measures to defuse local government debt risk, including setting debt ceilings for local governments and piloting a debt-for-bond swap program.

Liu said the government will continue to lower taxes and fees in an effort to ease corporate burdens as the ongoing deleveraging campaign and tightening financial regulation pushed up their funding costs.

The ministry expected that more than one trillion yuan of taxes and administrative fees would be reduced for enterprises this year.

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:    
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter