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China plans to allow local governments to issue 1.5 trillion yuan of special refinancing bonds

iconAug 22, 2023 19:10
Source:SMM
China plans to allow local governments to issue 1.5 trillion yuan of special refinancing bonds to help 12 provinces and regions with higher debt repayment pressure, including Tianjin, Guizhou, Yunnan, Shaanxi, and Chongqing.

China plans to allow local governments to issue 1.5 trillion yuan of special refinancing bonds to help 12 provinces and regions with higher debt repayment pressure, including Tianjin, Guizhou, Yunnan, Shaanxi, and Chongqing. The People’s Bank of China (PBOC) may set up the special purpose vehicle (SPV) as an emergency financial tool. With the participation of major banks, PBOC will provide working capital to locals with lower interest rates and longer maturities. If the relevant policies are introduced in the near future, in conjunction with the fiscal refinancing bonds, it will support the urban investment platform to resolve the current fund liquidity risk to a certain extent.

Macro economy
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