[Shanghai 17th Reuters]-Some local governments in China overestimate the revenue of public works funded by the issuance of "Special Purpose Bonds", and when the bonds are due for redemption Repayment risk may occur. The first finance of a financial magazine reported the story of local officials.
According to media reports, a senior official at the regional branch of the National Development and Reform Commission said, “Interest payments in the past few years have not been a problem, but once the principal repayment date arrives, there will be a repayment risk if the business revenue is not sufficient. "Let's point out." “If the local government can't repay, it can only sell the land.”
For special purpose bonds issued by local governments for road, railway, and water-related projects, the central government has set an upper limit of 2,150 billion yuan ($ 30,160 million) this year, but it is already close to the upper limit The amount has been issued.
The State Council (equivalent to the Cabinet) announced in September that it will allow the issuance of special purpose bonds earlier than usual in order to achieve stable economic growth.