China’s top legislature mulls debt swaps to reduce local governments’ fiscal risks

Standing Committee of National People’s Congress meets in Beijing for week-long discussions on many issues

By Riyaz ul Khaliq

ISTANBUL (AA) - China's National People’s Congress (NPC) Standing Committee met Monday to consider a plan to raise local governments' debt ceilings in order to transfer some of their off-balance-sheet liabilities to their official accounts.

The plan is aimed at easing their debt burdens and reducing fiscal risks as part of efforts to shore up the national economy.

Amid sluggish growth, China is expected to announce a fiscal stimulus package, with estimates ranging from 2 trillion to over 10 trillion yuan ($281.7 billion to $1.4 trillion), the South China Morning Post reported.

China has set an economic expansion target of around 5% this year.

The 170-member Standing Committee is authorized to take legislative decisions when the NPC is not in session.

It convened Monday for a week-long session to discuss fiscal stimulus, reform inside the Standing Committee, energy, arbitration, maritime law and science and technology popularization.

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