China’s government has “relatively large room” to incur debt, China’s finance minister Xiao Jie said on Tuesday, sending a message that Beijing is ready to increase government borrowing to bolster growth if needed.
Xiao, a former taxation chief who was promoted to his current post late last year, said at his first press conference that he was able to “put the risk of local debt into a cage” by opening a “front door” for local government to borrow, namely issuing bonds within a quota approved by Beijing, while closing “back doors” by banning illicit or illegal local government borrowings.
source http://www.omnipopmag.com/2017/03/07/chinas-finance-minister-sees-relatively-large-room-to-increase-govt-debt/
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