China has unveiled a significant 10 trillion yuan debt swap program aimed at stabilizing its economy amid internal and external pressures. Chinese lawmakers have approved a State Council bill to raise the local government debt ceiling by 6 trillion yuan (about $838 billion), officials announced during a press conference in Beijing on Friday. This approval provides local governments with a combined 10 trillion yuan of resources to swap their accumulated “hidden debts” over recent years.
China’s Minister of Finance, Lan Fo’an, emphasized the importance of this measure, describing it as one of the most crucial stimulus actions introduced recently to support the economy. “This initiative addresses the economic headwinds from both inside and outside the country,” Lan stated at the press conference.
The debt swap program is expected to assist local governments in managing their financial obligations more effectively. By providing substantial resources to address hidden debts, the government aims to reinforce economic stability and promote sustainable growth.
This move reflects China’s commitment to proactive fiscal policies in response to economic challenges. Observers note that the program could enhance investor confidence and facilitate the implementation of key development projects across the nation.
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China unveils 10 trillion yuan debt swap program to stabilize economy
cgtn.com
