News Column

Local Government Debt, Financing Platform to Be Spilt Off

May 21, 2014

BEIJING, May 21, SinoCast -- The opinions on major tasks on deepening the economic system reform for 2014 issued by the National Development and Reform Commission and approved and forwarded by the State Council put forward this year's reform idea of local government debts to establish a government debt-based local government debt financing mechanism and spilt off financing platform companies' government financing functions.

The opinions proposed to implement limit control on local government debts and include them into budgetary management in classification. Promote an accrual system-based consolidated financial reporting system, establish an evaluation and accountability mechanism and a local government credit rating system. Establish and improve a debt risk warning and emergency response mechanism and prevent and resolve debt risks.

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Source: Sinocast Investing & Securities Beat (China)

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