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Local governments fight hidden debt

Local governments fight hidden debt

New Special Bonds Issued to Address Hidden Debt Problem.

China struggles with its local debt.

Ce 24 July, the Political Bureau announces that’local debt must be urgently reduced. The latter (exposed as hidden) is estimated by the IMF at approximately 8 300 billions of dollars, either close to 48 % of Chinese GDP.

In reality, this local debt burden of the provinces has weighed on the Chinese economy for at least 2015, date of a first rescue plan for the local economy launched by Beijing. After a decade of reckless spending by governments. local, ordered to present good reports to the central authority, the time has come to pay the bill.

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