How much have China’s local governments borrowed? The answer has always been shrouded in mystery.
The last official update was released by the National Audit Office in mid 2011. It put the nationwide figure at 10.7 trillion yuan ($1.75 trillion) by the end of 2010.
Last week, the audit office issued a new report, a much less comprehensive one covering only 36 local governments at different levels. This said debt in the selected areas had grown 13 percent in the last three years. Extrapolating the audit office’s report’s 13 percent rise in local government debt across the entire country, Moody’s Investors Service estimates the direct and guaranteed debt of local governments could have been 12.1 trillion yuan at the end of 2012.
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wei Tian via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/6aaZHO2nFjQ/
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