(Yicai Global) Jan. 18 -- China's local government debt had amounted to CNY16.47 trillion (USD2.55 trillion) by the end of 2017, which is below the limit set by the National People's Congress, China's legislature.
General debt was CNY10.33 trillion, and special debt hit CNY6.14 trillion, showed data released by the ministry of finance on its website yesterday. The Fifth Session of the 12th National People's Congress set a maximum local government debt limit of CNY18.82 trillion for last year, in which the general debt ceiling was CNY11.55 trillion and special debt boundary CNY7.27 trillion.
Local governments raised CNY4.36 trillion yuan (USD677 billion) through debt issuance last year, official data showed. New debt issuance stood at CNY1.59 trillion, while that issued through the debt-for-bond swap program amounted to 2.77 trillion yuan, the ministry added.
China's total local government debt increased rapidly in recent years, raising concerns for financial policymakers and regulators, forcing them to issue warnings several times to control local fiscal risks.