China Lifts Local-Government Bond Sales 25% on Home Drive
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China’s Premier Wen Jiabao announced plans to increase local-government bond sales by 25 percent this year to expand home building, as regulators “clean up” finances of indebted regional authorities.
The Ministry of Finance plans to sell 250 billion yuan ($39.6 billion) of notes on behalf of local governments this year from 200 billion in 2010 and 2011, according to its 2012 budget presented to the National People’s Congress in Beijing today. The increase was required mainly for low-income housing and public-welfare projects, it said.