Regulator Proposes New Rules on Local Gov't Debt

(Beijing) – China's banking regulator has issued a proposal to support local governments in coming to terms with debt repayment – offering the possibility of new terms altogether.

The China Banking Regulatory Commission released draft rules that would require local governments to setup repayment schedules for profitable projects covered by existing capital. The CBRC is also seeking to require government debts linked to unprofitable investments to construction progress.