China’s LGFVs Must Repay a Record $651 Billion of Bonds in 2024
- Beijing has taken steps in recent months to contain debt risks
- LGFVs should be able to access ‘reasonable liquidty’: Natixis
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China’s local government financing vehicles need to pay back a record amount of maturing local bonds this year, testing the limits of a central government program to help them refinance their debt and avoid default.
The nation’s LGFVs — the companies that borrow on behalf of provinces and cities to finance mainly infrastructure projects, such as roads and ports — have 4.65 trillion yuan ($651 billion) worth of bonds due over the next 12 months, according to Bloomberg-compiled data. That’s the highest amount on record, and is roughly 13% more than what came due last year.