As China's top legislative body, the Standing Committee of the National People's Congress, concluded its week-long session on Friday, Finance Minister Lan Feng said it would ease liquidity pressure on local governments and free up resources for economic development. He said he would be released.
No new fiscal stimulus has been announced to directly boost the economy, but Ran promised further measures were on the way, including a “more supportive fiscal policy” next year.
“The central government still has plenty of room to borrow and increase deficits. We are now actively planning the next steps in fiscal policy and increasing countercyclical adjustments.”
According to Friday's announcement, the issuance limit for local special bonds will be increased by 2 trillion yuan per year by 6 trillion yuan over the next three years, and high-yield off-balance sheet debt will be included in the budget for lower interest payments.
Large-scale debt exchange scheme could ease immediate debt servicing pressure on many local governments
