In a significant move to bolster its economic stability, China has introduced a 10 trillion yuan debt swap program aimed at addressing the accumulated \"hidden debts\" of local governments.
During a press conference in Beijing on Friday, Chinese lawmakers approved a State Council bill that raises the local government debt ceiling by 6 trillion yuan (approximately $838 billion). This initiative provides local governments with a combined total of 10 trillion yuan to manage and swap their debts accumulated over recent years.
China’s Minister of Finance, Lan Fo’an, emphasized that this debt swap program is one of the most crucial stimulus measures implemented in recent weeks. The goal is to stabilize the economy amidst various internal and external challenges, ensuring sustained growth and financial resilience.
By addressing hidden debts, the Chinese government aims to enhance financial transparency and reduce long-term fiscal risks. This strategic move is expected to create a more robust economic framework, fostering confidence among investors and stakeholders both domestically and internationally.
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China unveils 10 trillion yuan debt swap program to stabilize economy
cgtn.com
