Arab Today, arab today china curbs thirdparty borrowing by local governments
Last Updated : GMT 05:43:04
Arab Today, arab today
Arab Today, arab today

China curbs third-party borrowing by local governments

Arab Today, arab today

Arab Today, arab today China curbs third-party borrowing by local governments

Moody's Lowers China Outlook over Local Debt and Lending Risks
Beijing - XINHUA

The Chinese government has taken key steps towards increasing the responsibility of individual regional and local governments for their own borrowing and investment decisions, a Moody's report said.
The new guidelines, announced on October 2 by the State Council, represent an important move towards establishing a new direct borrowing model for local governments, it said.
The guidelines will restrict indirect borrowing such as through local government financing vehicles (LGFVs), thereby leading to a deceleration of local government debt, which has been climbing sharply over the past years.
Moody's notes that they will also address the problem of riskier forms of borrowing from different sources, as well as related loopholes. Part of this approach includes restricting the activities of lenders. The end result should be the adoption by the local governments of more direct ways of financing, in turn heightening transparency and ultimately leading to more responsible decision-making.
These guidelines constitute another milestone in the development of a local government bond market in China, the effective management of the sharp rise in local government related debt, and the restriction of increasingly riskier forms of borrowing, it said.
The guidelines follow the central government's amendment of the budget law in August which ended the prohibition on the regional and local government borrowing.
Principal features of the new guidelines announced on October 2 include: upper-tier local governments will begin to issue bonds directly in their own name; lower-tier local governments, such as cities and towns, will only borrow through upper-tier governments; general obligation bonds and special purpose bonds will be permitted in accordance with quotas set by the State Council; LGFVs will halt borrowing on behalf of local governments, a major move as the bonds and debt of these entities equaled 39 percent of total local government-related debt as of June 2013, according to Moody's.

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*

Arab Today, arab today china curbs thirdparty borrowing by local governments Arab Today, arab today china curbs thirdparty borrowing by local governments

 



Arab Today, arab today

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*

Arab Today, arab today china curbs thirdparty borrowing by local governments Arab Today, arab today china curbs thirdparty borrowing by local governments

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 23:13 2017 Sunday ,18 June

New ransomware virus attacking mobiles in Oman
Arab Today, arab today
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
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday