BEIJING :China will let local governments raise about 1 trillion yuan through bond sales to repay the debt of local-government financing vehicles and other off-balance-sheet issuers, Bloomberg News reported on Friday.
Policy advisers and economists have said measures are likely to include debt swaps, loan rollovers and possible debt issuance by the central government to bail out some localities. No LGFV in China has defaulted in the public markets, but delinquencies in the private market are increasing. Big state-owned banks have recently rolled over loans to LGFVs or lent more to them.
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