China local govt debt at S$3.7 trillion as of June

[CityFarmer]

The official debt figures are published, but the doubt remains on its accuracies...

China local govt debt at S$3.7 trillion as of June

BEIJING – China’s local governments had total outstanding debt of 17.9 trillion yuan (S$3.7 trillion) as of the end of June, the state auditor said on Monday, up 67 per cent from 2010.

The National Audit Office said total debt directly shouldered by China’s central and local governments stood at 20.7 trillion yuan as of the end of June, amounting to 37 per cent of the country’s gross domestic product.

As well as money borrowed directly by local governments through various firms, the 17.9 trillion yuan figure also included contingent liabilities and debt guarantees that accrue to governments. REUTERS

http://www.todayonline.com/business/chin...llion-june

[pianist]

so much debt yet rmb is so strong these days?

[CityFarmer]

so much debt yet rmb is so strong these days?

Is debt of 37% of GDP too much?

[specuvestor]

There is a difference between debt in local currency and debt in foreign currencies. Those older will remember the difference during AFC. That's why Bernanke's idea of a central bank swap line is brilliant.

And those who follow our discussion on another thread on reserve currency will also understand why it is important for people to buy your local debt (think japan), which the reserve status will be of significant importance

All the more RMB need to be internationalised.