Ministry of Commerce of the People's Republic of C : China's debt-GDP ratio hits 43 percent: ICBC
06/27/2012| 05:14pm US/Eastern
Recommend:
China's government debt amounts to about 17.5 trillion yuan
(2.78 trillion U.S. dollars), about 43 percent of the
country's gross domestic product, Yang Kaisheng, president
of the Industrial and Commercial Bank of China, said Tuesday.
The debt is composed of 10.7 trillion yuan of local government
debt and 6.8 trillion yuan of central government debt, Yang
said at a press conference on the sidelines of China's
annual parliamentary session.
"Government debt in China now is at a controllable and
secure level," said the banking magnate, citing the
government work report delivered by Premier Wen Jiabao on
Monday.
The 43 percent debt-GDP ratio is well below the world's
average, according to Yang, who added that it is also lower
than the 180 percent and 83.2 percent ratios in Japan and
Germany, respectively, whose GDP is similar to that of China.
In the past five to six years, China's fiscal revenues
registered a compound annual growth rate of 22 percent, which
means the government is capable of paying off its debt, said
Yang, a member of the National Committee of the Chinese
People's Political Consultative Conference, the top
political advisory body.
He estimated that among the 10.7-trillion-yuan local government
debt, only about 4 percent is held directly by local
governments, while the rest is debted by local financing
platforms and companies set up by governments.
"From either a macro or micro statistical point of view,
the risks of local financing platforms are under control and
generally secure," Yang said.
Wen said in the government work report, "We fully audited
local government debt in a timely manner, and obtained a clear
picture of the total amount, due dates, geographic distribution
and causes of the debts local governments incurred over the
years."
However, the premier also warned that the debts also contained
risks and hidden dangers, and some localities with poor ability
to pay their debts were at risk of default.
distributed by
|
|
Recommend :
