Local Gov'ts Allowed to Swap Extra 1.2 Tln Yuan in Loans for Cheap Bonds

(Beijing) – China has permitted local governments and their financing platforms to trade another 1.2 trillion yuan worth of bank loans for less expensive bonds, bringing the total amount of debt that can be swapped this year to 3.2 trillion yuan.

Lou Jiwei, the finance minister, said on August 27 that the National People's Congress and the State Council, the country's cabinet, had approved a quota of 3.2 trillion yuan for this year's bond-loan swap arrangement. The Ministry of Finance announced earlier two batches that were each worth 1 trillion.