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 / Economy

Inland govts' debt 'more risky'

By Zheng Yangpeng (China Daily) Updated: 2014-03-26 08:31

"From a ratings perspective, we can say debt in Chongqing and Guizhou is more risky than in Guangdong and Jiangsu. But we cannot predict whether they will default or not," Guan said.

Local governments can repay debt using many strategies beyond drawing on fiscal revenue, Guan noted.

Inland govts' debt 'more risky'

Inland govts' debt 'more risky'

A primary option is to roll over debt. Many local governments are already doing that, either by taking out new loans or asking banks to extend the repayment period of maturing debt.

Another strategy, said Guan, is allowing local governments to issue bonds directly. They can then replace the old debt, usually with a short maturity and a high interest rate, with bonds, usually with a longer maturity and a lower rate.

The central government has already signaled its willingness to give local governments some autonomy to issue municipal bonds. Finance Minister Lou Jiwei told a forum over the weekend that the government is considering the possibility.

"It's not fair if projects that will benefit future generations are funded only through the tax payments of the current generation. So it's ok to issue some bonds, but under strict conditions," Lou said.

Analysts said this would be an important shift, because municipal bonds, which usually have long maturities and low rates, match the financial profiles of projects that local governments borrow to pay for.

"A majority of local government debt has been invested in infrastructure projects. The nature of these projects means their short-term cash flow is often insufficient to cover debt payments," said Song Li, a researcher with a think tank under the National Development and Reform Commission.

"However, barred from issuing bonds, local governments have taken to raising short-term debt for long-term purposes. The real problem for China's local governments is maturity mismatch. Municipal bonds can address the problem," Song said.

Guan agreed, saying: "If inland regions can issue a 30-year municipal bond, you really can't say that they won't be able to repay it within 30 years."

But Guan also warned that compared with coastal provinces, inland provinces have pronounced "transparency" and "management" issues.

With a weaker governance capacity, it's uncertain they can use debt efficiently, Guan said.

"A key question is whether they can use that money to invest in projects that really foster wealth creation.

"If they can enhance their repayment capacity, it should be no problem. Otherwise, it is risky," Guan added.

Inland govts' debt 'more risky'
Top 10 cities with best air quality in China

Inland govts' debt 'more risky'
China's top 10 richest cities

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
...
澳门| 彭山县| 夏津县| 佛学| 汾西县| 泰州市| 扶余县| 乌拉特后旗| 革吉县| 两当县| 凌云县| 光山县| 巴林左旗| 阜南县| 苏州市| 通州区| 宣汉县| 翁源县| 林口县| 特克斯县| 东兴市| 宁化县| 兴安盟| 贵南县| 潮安县| 闸北区| 镇巴县| 湖北省| 霸州市| 黔江区| 甘南县| 威远县| 兰溪市| 富蕴县| 会昌县| 台南市| 邹平县| 峨边| 沐川县| 凌源市| 田东县|