China has announced new measures to support the Asian country's economy. The fund aims to help China's regional governments repay their debts, Reuters reported.
Beijing authorities will allow local government officials to use 10 trillion yuan (more than $1.39 trillion) to cover so-called “hidden” regional debt. These funds will be provided through the issuance of new debt of 4 trillion yuan ($558.72 million) and by raising the local government debt limit by 6 trillion yuan ($838.08 million).
China issued a decree allowing local governments to increase their total debt from 29.52 trillion yuan to 35.52 trillion yuan through bond issuance.
Chinese Finance Minister Lan Foan said today that the so-called “hidden” debt of local governments at the end of 2023 amounted to 14.3 trillion yuan. Beijing authorities plan to reduce this obligation to 2.3 trillion yuan by 2028.
Lan Foan also hinted that new measures are being prepared to support China's economy.
/SLS/