Breaking News Bar
updated: 12/30/2013 8:42 AM

Audit finds China's local government debt soaring

Success - Article sent! close
Associated Press

BEIJING -- A new audit report says China's local government debt has soared 70 percent over the past three years and warns local leaders to take steps to control the rapid increase.

The report Monday follows warnings rising debt could endanger China's economic growth. Communist Party leaders have pledged to make getting debts under control an official priority.

The National Audit Office reports local governments owe directly or have guaranteed 17.7 trillion yuan ($2.9 trillion) as of June. That's up from Y10.7 trillion ($1.7 trillion) at the end of 2010.

The audit office warns debt still is "rising relatively fast." It says local leaders need to tighten control over borrowing and create an "emergency response mechanism" for their stock of debt.

Article Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.