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 12:47 2016 Thursday ,01 September

'La La Land' musical masterpiece dazzles Venice film fest

GMT 12:42 2017 Monday ,20 February

Dalia al-Behairy begins 'Yawmiyat Zoga Mafrosa'

GMT 19:01 2017 Wednesday ,30 August

Oil prices down as US reels from Harvey

GMT 04:19 2017 Monday ,08 May

National forces attack mercenaries in Taiz

GMT 19:21 2017 Sunday ,07 May

Iranian Film Week opens in Baghdad

GMT 21:33 2017 Sunday ,30 July

Arab Quartet meeting kicks off in Bahrain

GMT 17:17 2016 Friday ,07 October

Aleppo bleeds as US and Russia spar

GMT 12:03 2015 Monday ,21 December

Nepal protester killed in constitutional crisis clash

GMT 09:47 2016 Thursday ,22 December

Trump vows to cut F-35 spending, as leaked memo

GMT 21:44 2017 Friday ,15 December

King establishes Hawar Development Committee

GMT 20:57 2017 Tuesday ,16 May

Naval Forces rescue 23 tourists in Hurghada

GMT 12:56 2017 Monday ,11 December

Lyon leave it late, Balotelli with Nice winner

GMT 06:18 2017 Thursday ,19 October

Russian delegation meets with Julphar chairman

GMT 21:20 2017 Monday ,23 October

Nasr, delegation of London Stock Exchange

GMT 14:40 2012 Saturday ,10 March

Magdy Al-Galad steps down

GMT 09:47 2017 Sunday ,12 March

Cat Camp in New York attracts cat lovers

GMT 14:57 2016 Friday ,09 September

Madonna, Ritchie settle child custody dispute

GMT 23:52 2017 Monday ,18 September

UAE economic growth boosting logistics sector
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