|
BEIJING, Nov. 4 (Xinhua) -- Chinese local governments issued 1.13 trillion yuan (nearly 170 billion U.S. dollars) worth of bonds in the first nine months of the year, official data showed.
The amount accounted for 96.2 percent of the annual quota approved by the country's top legislature earlier this year, the Ministry of Finance (MOF) said Friday in an online statement.
To rein in rising debt risks, China overhauled the management of government debts two years ago, streamlining fund-raising channels for local authorities and putting a cap on their annual bond issuance.
A debt-for-bond swap program was introduced to convert outstanding debts. By the end of September, local governments had replaced 7.2 trillion yuan of debts under the program, the statement said.
The MOF reiterated that China's government debt level is reasonable, citing a 38.9-percent debt/GDP ratio last year -- markedly lower than the 60-percent alert line of the European Union.
The debt level will remain stable during the remainder of the year and beyond thanks to growing fiscal incomes and GDP, the MOF said.
The government bonds are used to raise funds for urban infrastructure construction and public facilities. China is ramping up public spending to shore up the economy as private investment turned sluggish this year in fear of a continued slowdown.
Fully aware of debt risks, the MOF said it will continue to implement rigorous debt management and act against violations in government financing.
