国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Business / Markets

Call for local govts to issue bonds for projects

By LAN LAN and WANG ZHUOQIONG (China Daily) Updated: 2012-09-08 02:57

China needs to allow local governments to issue bonds to help tackle the financing bottleneck in infrastructure construction, said a senior official of the country's top economic planning agency on Friday.

The government should further relax the existing regulatory system and allow county and prefecture-level cities to issue bonds, said Xu Lin, head of the Fiscal and Financial Department of the National Development and Reform Commission.

The NDRC has accelerated project approval in a bid to boost economic growth. China’s economic growth slowed to 7.6 percent in the third quarter, the slowest pace in three years.

On Wednesday it announced the approval of 25 rail transit projects with a total estimated investment of 800 billion yuan ($127 billion).

However, many cities are lagging behind in terms of water, sewage and waste treatment facilities, said Xu.

It’s “not sustainable” for local governments to rely on income from land transfer payments to finance infrastructure construction, he added.

Many cities in eastern coastal areas have seen a sharp decline in income due to the stringent measures on the real estate market.

Bank credits, a vital source of capital for local government infrastructure construction, often add to their financial risks, as the debt maturity of bank loans usually doesn’t match the profit period of the projects.

To solve the financing difficulties, the government needs to further relax its regulations and allow local governments to issue debt, Xu said.

According to existing budget law, local governments are not allowed to issue bonds without the approval of the State Council.

The Ministry of Finance has set a quota of 250 billion yuan for this year’s local government bond issuance, which is totally inadequate, according to Xu.

China has sufficient funds for infrastructure projects, as a large portion of bank deposits have yet to be invested in the real economy.

Corporate bonds only account for about 10 per cent of China’s GDP, he said.

Three regulators manage bond issuance: The NDRC controls corporate bonds issued by State-owned companies; the China Securities Regulatory Commission is in charge of bonds issued by listed companies; and the central bank looks after commercial paper and medium-term notes traded in the interbank market.

China’s local government debts hit 10.7 trillion yuan at the end of 2010, equivalent to about 27 percent of gross domestic product, according to a report from the National Audit Office. Although some local governments are facing higher risks in repaying their debts, the nation’s overall risk is relatively low, said Xu.

Contact the writers at lanlan@chinadaily.com.cn and wangzhuoqiong@chinadaily.com.cn.

Hot Topics

Editor's Picks
...
吉木乃县| 南昌市| 凯里市| 林西县| 桦南县| 营口市| 平山县| 祁连县| 凤山市| 合江县| 兖州市| 勃利县| 额敏县| 双峰县| 敦化市| 康乐县| 夏邑县| 吉林市| 温宿县| 荥阳市| 武川县| 象州县| 缙云县| 延边| 偃师市| 朔州市| 稻城县| 敦化市| 峨眉山市| 漳州市| 麦盖提县| 驻马店市| 辉南县| 阳东县| 平山县| 新野县| 宁晋县| 浦县| 台北县| 龙江县| 郧西县|