China Launches $1.4 Trillion Debt Swap to Support Local Governments

Reported 17 days ago

China has introduced a 10 trillion yuan ($1.4 trillion) debt swap program aimed at refinancing local government debt amid economic slowdown risks, especially following Donald Trump's reelection. The initiative, which increases the debt ceiling for local governments and allows them to issue additional bonds, is intended to mitigate hidden debts estimated at 14.3 trillion yuan as of late 2023. This policy follows a trend of supportive measures aimed at stabilizing the economy, which grew only 4.6% in the third quarter, prompting urgency in boosting local investment and consumption.

Source: YAHOO

View details

You may also interested in these wikis

Back to all Wikis