China Central Government's Limitation in Dealing Local Debts
ANBOUND
NDRC provided facilities for the local debts shortly after the release of local debt data by the Audit Office. ANBOUND's senior researcher He Jun thinks that the central government needs to fulfill the following criteria when dealing with local debts. First, local debts should be repaid by local governments. Second, the central government must have its own bottom line when dealing with local debts. No partial risks or large number of unfinished projects is allowed. Third, the central government will provide policy and direction, but the local governments have to find their own solutions. Fourth, the central government needs to enforce strict measures on credit limit.