china must rein in rapid growth in local govt debt
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

China must rein in rapid growth in local govt debt

Arab Today, arab today

Arab Today, arab today China must rein in rapid growth in local govt debt

motorists driving on an interchange in Chongqing, southwest China
Beijing - Arab Today

China must rein in rapid build-up in local government debt and should implement reforms at the local level to raise transparency and allow market forces play a bigger role, an influential government economist said on Tuesday.
“We can’t take a laissez-faire attitude toward local governments’ excessive growth in debt,” Li Yang, chairman of the National Institution for Finance and Development, told a forum on regional development where researchers and media were in attendance. “We must reform.”
Global investors are increasingly worried about mounting debt in China, with continued efforts by authorities to stimulate the economy threatening to amplify the problem.
Moody’s Investors Service downgraded China’s credit ratings in late May for the first time in nearly 30 years, saying it expects the financial strength of the world’s second-largest economy will erode in coming years as growth slows and debt continues to rise.
Li said local government debt between 17.5 trillion yuan to 21.3 trillion yuan ($2.6 trillion to $3.1 trillion) by the end of 2016, which accounted for about 23 percent to 28 percent of the country’s gross domestic product (GDP).
Local governments have come up with “new tricks” to raise funds in the past two years after their debt-issuance was somewhat restricted with the passing of a new budget law in 2015, Li said.
The new channels included setting up the so-called government-led funds to lure private money of questionable source for state investment. Meanwhile, some local governments have stretched their fiscal budget, and even used “maintaining social stability” as a political cause to ask for central monetary support, Li said.
He called for reforms to limit the hand of government at the local level — by giving market forces and private investments a more decisive role — and added that local governments should be required to increase fiscal transparency and stick to their fiscal budgets.
While criticizing Moody’s for its “unreasonable downgrade” on China, Li said local governments could get some pointers from credit ratings.
“From another perspective, some people say an institution that always finds fault with you can force you to see your own problems,” he said.
Beijing has rolled out tighter controls on new local government debt issuance amid an intensifying crackdown on its bubbly financial sector this year to help ward off debt risks.
China’s structural reforms will slow the pace of its debt build-up but will not be enough to arrest it, and another credit rating cut for the country is possible down the road unless it gets its ballooning credit in check, officials at Moody’s said.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china must rein in rapid growth in local govt debt china must rein in rapid growth in local govt debt

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china must rein in rapid growth in local govt debt china must rein in rapid growth in local govt debt

 



GMT 04:22 2017 Tuesday ,26 December

Israel in touch with '10 countries' over embassy moves

GMT 19:43 2017 Friday ,06 October

Employee safety top priority at Khalifa Port

GMT 16:19 2017 Friday ,28 April

ISIS Suspect Arrested in Western Germany

GMT 12:57 2017 Monday ,11 December

50 Students Poisoned by Contaminated Well Water

GMT 16:31 2017 Thursday ,10 August

Palestinians will discuss decline of aids

GMT 21:15 2017 Saturday ,04 March

Obama never ordered surveillance on any US citizen

GMT 10:00 2017 Thursday ,09 March

Russia ‘can be good friends with GCC’

GMT 02:13 2017 Wednesday ,22 February

Russian helicopter crash kills 19 in Siberia

GMT 13:23 2017 Tuesday ,05 December

Lebanon PM Hariri rescinds resignation

GMT 00:39 2017 Tuesday ,05 December

Gunmen kill cleric in Aden, southern Yemen

GMT 11:43 2016 Thursday ,24 November

Will learn from Euro exit

GMT 06:56 2017 Tuesday ,17 October

US ‘not taking sides’ between Iraqi forces, Kurds

GMT 19:59 2017 Thursday ,16 February

Syrian opposition's chief negotiator arrives in Astana

GMT 15:41 2017 Thursday ,29 June

US sets new visa rules for 6 mainly Muslim nations

GMT 19:31 2017 Saturday ,11 February

Earthquake Hits Taiwan

GMT 15:30 2017 Monday ,27 November

Syrian government will not join peace talks on Monday

GMT 16:20 2017 Tuesday ,31 October

La Rochelle survive red card to down Toulouse

GMT 20:33 2018 Tuesday ,16 January

Bahraini official receives UAE Ambassador

GMT 22:40 2018 Monday ,08 January

Bahrain to host first Baby Games
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday