China unveils steps to tackle 'hidden' debt of local goverments
BEIJING, Nov 8 (Reuters) -China will allow local governments to issue 6 trillion yuan ($838.77 billion) in bonds to swap for off-balance sheet or "hidden" debt over three years, an official said on Friday.
China's top legislative body, the standing committee of the National People's Congress (NPC), approved a bill on raising ceilings on local government debt during a meeting from Nov. 4 to 8, said Xu Hongcai, vice chairman of the financial and economic affairs committee of the NPC.
Xu, who made the remarks at a press conference in Beijing, added that the debt swap would help resolve local debt risks.
($1=7.1533 Chinese yuan renminbi)
Reporting by Kevin Yao; Writing by Ellen Zhang; Editing by Clarence Fernandez
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