Analysis-China can no longer 'extend and pretend' on municipal debt
China's promised "basket of measures" to defuse local government debt risks is likely to include special bond issuance, debt swaps, loan rollovers, and something Beijing really loathes: dipping into the central budget. Local governments are fundamental to China's economy, with Beijing tasking provincial and city officials with meeting ambitious growth targets. Chinese leaders last month pledged, without detailing, to help ease their debts, signalling worries over a potential chain of municipal debt defaults destabilising the financial sector.
Source: yahoo.com
