China announced on Friday that it will raise the local government debt ceiling by 6 trillion yuan (approximately 780 billion euros), a move intended to bolster the economy, according to state media.
Following a significant meeting of key officials from the Chinese Parliament, state television CCTV reported that they had approved “the most substantial debt reduction measure in recent years.”
This decision will increase “the debt ceiling for local governments by 6 trillion yuan, which will be used to replace existing hidden debts,” enabling them to “more effectively develop the economy and ensure the well-being of the population,” the source emphasized.
Chinese Finance Minister Lan Fo’an clarified during a press conference on Friday that this increase will be implemented over three years, with an annual addition of “2 trillion yuan from 2024 to 2026.”
