China’s Central Bank Vows Liquidity for Debt-Laden Regions
- Pan Gongsheng says debt levels are at a mid- to low level
- China trying to defuse risks from hidden local government debt
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China will provide emergency funding to heavily indebted local governments as needed, central bank Governor Pan Gongsheng said — comments that underscore the importance authorities place on the problem.
“When it’s necessary, the People’s Bank of China will provide emergency liquidity support to regions with a relatively heavy debt burden,” Pan said in a speech at the Financial Street Forum in Beijing on Wednesday.