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Local government debt 'under control': Premier

By Zheng Yanpgeng (Agencies)
Updated: 2014-03-13 11:24

The potential risks from China's local government debts cannot be overlooked, and China will open its "front doors" while blocking the "side doors" to tackle those risks, Premier Li Keqiang said.

He said China is going to take further regulatory measures to put those debts under budgetary management, and enhance the oversight of local government financial vehicles.

"We'll keep the front door open and block the side doors," he said, referring to the government plan to ensure local governments get finance through well-regulated channels.

Li said the overall risk is under control and the debt to GDP ratio is still below the internationally recognized warning line. Moreover, most of the debts are in the form of investment, he noted.

China's local government debt and contingent liabilities ballooned to 17.89 trillion yuan ($2.91 trillion) as of the end of June, according to a national audit result released at the end of last year.

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