28 Jul 2013
China announces 'urgent' govt debt audit
FXstreet.com (Barcelona) - China has called for a nationwide audit of all debt held by local governments, according to China's National Audit Office, as worries over 'out of control' liabilities mount.
"In line with a demand by the State Council in recent days, the National Audit Office will organise auditing agencies nationwide to carry out an audit of government debt," the official release issued on Friday said.
The action comes at a time of deep reforms in China, following a special request from the State Council. Local newspaper People's Daily reports that the matter has been classified as urgent.
In view of Eric Burroughs: "Clearly Beijing worried about local govt debt and wants to tackle the issue", adding that "it reinforces idea Beijing will tolerate weaker growth to clean up problem areas."
China's debt to GDP, as estimated by the IMF, is thought to stand at 45%.
"In line with a demand by the State Council in recent days, the National Audit Office will organise auditing agencies nationwide to carry out an audit of government debt," the official release issued on Friday said.
The action comes at a time of deep reforms in China, following a special request from the State Council. Local newspaper People's Daily reports that the matter has been classified as urgent.
In view of Eric Burroughs: "Clearly Beijing worried about local govt debt and wants to tackle the issue", adding that "it reinforces idea Beijing will tolerate weaker growth to clean up problem areas."
China's debt to GDP, as estimated by the IMF, is thought to stand at 45%.