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China local government debt rises to $3.4tn
December 30, 2013, 10:28 am

A Chinese Cabinet report released on Wednesday last week criticized what it called “blind government investment in industrial projects” saying this increased risks in local government debt [Xinhua]

A Chinese Cabinet report released on Wednesday last week criticized what it called “blind government investment in industrial projects” saying this increased risks in local government debt [Xinhua]

China’s National Audit Office (NAO) said Monday in a statement that governments at various levels in China were liable for a total direct debt of 20.7 trillion yuan ($3.4 trillion) by the end of June, 2013.

Total debt guaranteed by governments at various levels amounted to 2.93 trillion yuan ($479.7 billion) at the end of June, NAO said in the statement posted on its website.

“China’s government debt risks are under control in general, but there are potential risks at some places,” the NAO said.

A Chinese Cabinet report released on Wednesday last week criticized what it called “blind government investment in industrial projects” saying this increased risks in local government debt.

China’s Finance Minister Lou Jiwei said on Thursday last week  that China will enhance the management of its local government debt.

“In the next year, we will strengthen local government debt management. We will build open channels, block secret routes and contain debt risks effectively,” Lou said at an annual national fiscal work conference.

 Source: Agencies

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