BEIJING: China's local governments can swap high-interest debt previously sold by their financing companies for more cost-effective municipal bonds, Finance Minister Lou Jiwei said.
In a speech in parliament about China's fiscal system, Lou said China will control the amount of debt borrowed by its regional governments, but will also improve the way in which they can sell bonds themselves to raise cash.
China's rubber stamp parliament is meeting this week and reviewing proposed amendments to the country's fiscal law that would allow regional governments to issue bonds for themselves.
Lou's comments were made on Wednesday but announced only on Thursday on the finance ministry's website.
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