Lo­cal govts get nod for di­rect bond sales

China Daily (Canada) - - BUSINESS -

The cen­tral gov­ern­ment will let lo­cal gov­ern­ments ap­ply for di­rect bond sales, ac­cord­ing to com­ments made by Fi­nanceMin­is­ter Lou Ji­wei in a re­port on the 2014 bud­get de­liv­eredWed­nes­day to the Stand­ing Com­mit­tee of the Na­tional Peo­ple’s Congress. The re­marks were con­tained in a tran­script posted on the fi­nance min­istry’s web­site on Thurs­day. Pre­mier Li Ke­qiang is al­low­ing re­gional au­thor­i­ties to raise money di­rectly, af­ter they ac­cu­mu­lated 17.9 tril­lion yuan ($2.9 tril­lion) in debt, in an ef­fort to avert a slow­down in the world’s sec­ond­largest econ­omy. China’s towns and cities have used more than 10,000 fi­nanc­ing ve­hi­cles to sell notes af­ter they were barred from di­rectly is­su­ing bonds un­der a 1994 bud­get law.

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