NDRC Promises Program to Encourage Local Governments to Repay Debts

Beijing has vowed to draft a plan to urge local governments to repay their overdue debts to private companies in a bid to help revitalize dwindling private investment.

The plan, if enacted and enforced, could enhance the confidence of private investors and encourage more funds from the private sector, experts said Thursday.

This plan to address the debt issue is part of a series of measures by the National Development and Reform Commission (NDRC), China's economic planner. It issued a statement Wednesday outlining ways to boost private investment. These include improved access to various sectors, promoting government and private partnerships and repaying debts to private companies.