China Foreign Debt Swells: China’s foreign debt...
China Foreign Debt Swells: China’s foreign debt reached $40 billion at the end of last year, an increase of $5 billion from mid-1988, the official China Daily said.
The government is now taking measures to cut foreign borrowing, which has been growing at an annual rate of 38% during the past four years, the newspaper said.
In recent weeks, the government has limited the number of financial institutions and government offices allowed to borrow abroad. Under new regulations, only 10 financial institutions are authorized to obtain foreign loans, and only the central bank, the People’s Bank of China, can borrow from the International Monetary Fund.
The report quoted Zhang Jialun, a senior Finance Ministry official in charge of debt management, as saying China’s debt is still manageable.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
