Pan Gongsheng, President of the People's Bank of China, admits that the scale of debt in some provinces has certain risks, emphasizing that local governments must do everything to reduce the scale of debt.
Pan Gongsheng, also the director of the State Administration of Foreign Exchange, said in an interview published on Friday (October 11), a CCTV News client: "The debt scale of some provinces has certain debt risks.Pay attention to local governments to bear the main responsibility, and to do everything possible to reduce the scale of debt.The economy is large and the growth rate is good, and there is not such a high level of risk.
He also said: "Strict control of the financing of new projects, on this basis, the central government provides some necessary policy support. We guide and encourage financial institutions and local governments to negotiate, such asIs it possible to reduce some interest appropriately and whether you can adjust the structure of the deadline.project.
People familiar with the matter said that a document of the State Council was issued to local governments and state -owned banks in October.The document mentioned that 12 provinces and municipalities autonomous regions including Liaoning, Jilin, Yunnan, Guizhou, Tianjin and Chongqing will only bear specific projects approved by the central government. The construction of railway stations and power plants will not be allowed.
The Ministry of Finance of China issued a notification on typical cases of hidden debt accountability on local governments this week, involving some areas of Hubei Province, Xi'an, and Fuling County, Xuchang City, Henan Province.
Pan Gongsheng also said that China's real estate financial risks are controllable."In the long run, the demand for improved housing in residents' families is large, which can provide support for the long -term stable development of the real estate market and the industry."
