China to inject 10 trillion yuan to ease local debt over five years

China has announced a plan to invest nearly 2,000 trillion won in Korean money over the next five years to ease local government debt.

China's Finance Minister Lan Poan told a news conference announcing the results of the 12th meeting of the Standing Committee of the 14th National People's Congress that a plan to increase the local government debt limit by 6 trillion yuan was approved.

He went on to say that over the next five years, 800 billion yuan of special local government bonds will be allocated for debt settlement every year to pay off the "hidden debt" amounting to 4 trillion yuan in total.Manager

explained that adding the 6 trillion yuan debt limit approved by the National People's University and 4 trillion yuan in special bonds would increase local debt relief funds to 10 trillion yuan (about 1,937 trillion won).

On top of that, it added that 2 trillion yuan of debt from the shanty town renovation project, which expires after 2029, will be repaid under the original contract.Manager

stressed that when the three policies work together, the total amount of hidden debt by 2028 will be significantly reduced from 14.3 trillion yuan to 2.3 trillion yuan.