Policymakers gathered in Beijing this week voted to swap their hidden debts - defined as borrowing for which a government is liable, but which is not disclosed to its citizens or to other creditors. The move would raise "the local government debt limit by six trillion yuan, which will be used to replace existing hidden debts, freeing up space for local governments to better develop the economy and protect people's livelihood," state broadcaster CCTV said.
The debt ceiling will be raised every year from 2024 to 2026 "to support local governments in replacing all kinds of hidden debt", he said. A total of $558 billion of "hidden debt can be replaced", Lan explained. And $112 billion "will be arranged from new local government special bonds every year for five consecutive years to supplement government financial resources," he added.
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