Wen says government debt 'controllable'
By Louise Ho |
January 31, 2012, Tuesday
|
Print Edition
Print Edition
CHINA'S government debt is "overall safe and controllable," Premier Wen Jiabao has said, but he advised against a "hit the brakes" approach to ensure continued funding for key infrastructure projects.
Wen assured that the government took the issue of managing local government debt, which is used to construct infrastructure facilities, very seriously.
The People's Daily yesterday published Wen's speech, which was made in early January at the national financial work conference.
"Currently, our government debt is in an overall safe and controllable level," he said. "Through cleanups and regulations, the trend of expanding local government investment has been contained effectively."
Wen agreed that China must both actively and appropriately solve financial and fiscal risks to "ensure the funding needs of government-approved key infrastructure projects that are under construction."
But the premier warned against a simplistic approach to address the problem of local government debt.
"We cannot have a simple 'hit the brakes' approach and must avoid turning localized risks into comprehensive and systemic risks," Wen pointed out.
China will continue to monitor local government investment and introduce a pilot program that allows local governments to issue bonds and expand their sources of funding, Wen said.
Wen assured that the government took the issue of managing local government debt, which is used to construct infrastructure facilities, very seriously.
The People's Daily yesterday published Wen's speech, which was made in early January at the national financial work conference.
"Currently, our government debt is in an overall safe and controllable level," he said. "Through cleanups and regulations, the trend of expanding local government investment has been contained effectively."
Wen agreed that China must both actively and appropriately solve financial and fiscal risks to "ensure the funding needs of government-approved key infrastructure projects that are under construction."
But the premier warned against a simplistic approach to address the problem of local government debt.
"We cannot have a simple 'hit the brakes' approach and must avoid turning localized risks into comprehensive and systemic risks," Wen pointed out.
China will continue to monitor local government investment and introduce a pilot program that allows local governments to issue bonds and expand their sources of funding, Wen said.
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