Local government bonds worth a combined 350 billion yuan (US$57.39 billion) will mature this year, most of which in March and April, China Business News reported Tuesday, citing research by the Bank of Communications Co. Ltd. (03328.HK, 601328.CN). The bonds were issued to finance urban construction projects, the report said. As of end-June last year, local governments’ debt obligations amounted to 10.9 trillion yuan, of which 2.39 trillion yuan is due this year, according to data from the National Audit Office. But the local governments’ debt risk is still manageable with most of the money used for investment rather than consumption, People’s Bank of China vice governor Pan Gongsheng was quoted as saying.
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