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Central Authority Vows No Bailouts for Illicit Loans

As of the end of 2016, regional and local governments had 15.32 trillion yuan ($2.3 trillion) in total debt, according to data from the Ministry of Finance. Meanwhile, the central government’s debt balance was 12.01 trillion yuan. Photo: Visual China
As of the end of 2016, regional and local governments had 15.32 trillion yuan ($2.3 trillion) in total debt, according to data from the Ministry of Finance. Meanwhile, the central government’s debt balance was 12.01 trillion yuan. Photo: Visual China

The central government will not secure irregular loans taken out by local and regional governments as it seeks to curtail runway growth in off-balance sheet debt, the Ministry of Finance said.

At the conclusion of the Central Economic Work Conference on Wednesday, Chinese authorities said preventing financial risks will be one of three critical battles going forward, according to a report by the official Xinhua News Agency.

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