China will "significantly raise" local governments' bond issuance this year from last year's 600 billion yuan, Xinhua-affiliated Economic Information Daily reported on Friday.
Citing an unnamed official source, the newspaper said municipal bond issuance will be much higher than last year's, perhaps hitting 1 trillion yuan. Besides, the government will boost the quota under which local governments could issue new low-cost bonds to replace existing, high-interest rate debt.
Last year, the debt swap quota was set at 3.2 trillion yuan, while China International Capital Corp estimated in order to swap all of debts in three years, average swap quota would be 3.7 trillion yuan in the next three years.
Together, the local government would need to issue 5 to 6 trillion yuan of bonds next year, the newspaper said.
The source said provinces who had a lower debt to GDP ratio this year could get a larger quota of new municipal bonds, while those with a high debt ratio would get a smaller quota.
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263 Registration Number: 130349 
