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Municipal bonds issuance possible: central banker
By Bi Xiaoning and Zheng Lifei (chinadaily.com.cn)
Updated: 2009-07-04 11:41 China is considering letting local governments issue municipal bonds to help bankroll urban infrastructure construction, the central bank chief said on Saturday. "Relevant rules are in discussion and debate about the issue is very heated," Zhou Xiaochuan, governor of the People's Bank of China, said at a conference in Beijing. "Personally, I prefer to give it [municipal bonds issuance] a green light," Zhou said. The issuance of municipal bonds, he added,, will help address two pressing problems at present: one is that the new local administration will sometimes turn a blind eye to the debt left over by its predecessors; the other is the lack of rating service on local government bonds. |
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