(Beijing Comprehensive News) The US think tank report shows that half of the surveyed Chinese cities are facing debt repayment difficulties, which limits local governments' financial support for economic recovery.

Local governments are facing debt repayment difficulties.In contrast, only one -third of cities in 2021 face this difficulty.

The report said that the impact of the crown disease epidemic and epidemic prevention measures last year, the downturn in the real estate market led to a decrease in tax and land sales revenue, which increased the pressure on debt repayment of local governments.The cost of debt repayment in some cities, such as Lanzhou and Guilin, surpassed the total financial revenue of last year.

The cost of debt repayment mainly refers to the interest that the debt party must pay, but it also includes fees such as debt issuance fees.

The

Report states that debt repayment pressure limits the ability of local governments to stimulate the economy with fiscal policies, which is also the fundamental reason why such policies have not introduced this year.

The meeting held by the Political Bureau of the Central Committee of the Communist Party of China once again demanded that local government debt management was strengthened, and new hidden debts were strictly controlled.

hidden debt means that the government borrows through the establishment of a financing platform, such as urban investment companies, and the interest cost is usually higher.According to the international estimation of integrity in the rating agency, as of the end of 2022, the number of hidden debt in Chinese local governments was 5.2 trillion (RMB of RMB, 9.9 trillion, the same below) to 58 trillion yuan, which is 1.5 from 1.5 to explicit debt to to to 58 trillion yuan to 58 trillion yuan.1.7 times.