China’s State Council, the cabinet, said Wednesday that it will take measures to further promote market-based debt-to-equity swap programs to alleviate corporate debt burdens and spur growth.

The cabinet said it will expand a pilot program that allows institutions to convert debt into preferred shares and will encourage financial institution to raise capital to facilitate such programs. Non-state investors are also encouraged to take part in the debt-to-equity swap programs, the cabinet said in a meeting chaired by Premier Li Keqiang.

More than 900 billion yuan ($130.4 billion) in debt-to-equity swaps have been completed since 2018, making it an important method for dealing with corporate debt risks, the cabinet said.

Related: China Presses Financial Firms to Swap More Debt for Equity