BUSINESS China to boost local-government special bond issuance

BUSINESS

China to boost local-government special bond issuance

Xinhua

11:16, July 30, 2020

680bad09763b4bacbf359659940afb90.jpeg

File photo: VCG

China will accelerate the issuance of local-government special bonds, the Ministry of Finance announced in a circular on Wednesday.

The issuance of new special bonds should be coordinated with that of special bonds for COVID-19 control and general bonds to keep the bond market stable, with the issuance to be completed by the end of October, said the circular.

The maturity of the bonds should be decided in accordance with actual circumstances, according to the document.

Meanwhile, the allocation of the new special bonds should be optimized, the circular said, with the funds used in areas including transport infrastructure, energy projects, agricultural and water conservancy, and environmental protection projects.

The circular strictly forbids using the new special bonds for the replacement of outstanding debt, as well as recurring expenditure, unit operating expenses, payment of pensions, paychecks or interest payments.

Special bonds that have been issued should be put to use properly and in a timely manner, said the circular, while the ministry will keep a close eye on the issuance and use of the bonds to ensure the efficiency and quality of the funded projects.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue