China Said to Mull Doubling 1t Yuan Local-Debt Swap Program

China’s Ministry of Finance may set additional quota of 500b-1t yuan for local governments to swap debt into municipal bonds, according to people familiar with the matter.

  • Plan needs State Council approval, according to the people, who asked not to be identified because deliberations are private
  • Finance ministry said March 8 govt would permit as much as 1t yuan of high-yielding debt to be converted into municipal bonds
  • Finance minsitry doesn’t immediately respond to faxed

— With assistance by Steven Yang

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