Beijing Government End-June Debt Rises 9% From End-2012

Beijing municipal government had 650.6b yuan ($107.6b) of direct debt as of June 30, up from 597b at end 2012, city’s audit authority says in report dated Jan. 24 * The local government also had 15.2b yuan of debt it guaranteed and 89.6b yuan of other contingent liabilities: report * 30% of the 650.6b yuan of debt, or 194b yuan, is due for repayment this year and 14% in 2015: report * Of total end-June debt, bank loans account for 386.4b yuan: report * Local government financing vehicles debt is 71.9b yuan: report * Risks of Beijing government’s debt are controllable in general though there are problems in debt management: report * City faces heavy debt burden related to transportation construction such as subway system: report * Significant amount of debt depends on land sales revenue as a source of repayment: report * NOTE: National Audit Office released report on Dec. 30 stating * NOTE: Local governments including Guangdong, Guangxi, Jilin