Reported 16 days ago
China has sanctioned a substantial 10 trillion yuan ($1.4 trillion) debt package aimed at rejuvenating its struggling economy by allowing local governments to refinance their debts. This includes a borrowing limit of 6 trillion yuan over the next three years to address hidden debts tied to local financing platforms, along with access to 4 trillion yuan in special bonds over five years. Despite hopes for significant economic stimulation, analysts regard this package as insufficient given ongoing challenges such as a slow GDP growth rate of 4.6% and a looming risk of defaults amid high levels of local government debt.
Source: YAHOO