Cutting These 10 Everyday Expenses in 2014 Will Save You $8,844
How to Perfectly Plan Your Divorce to Protect Your Assets
PNC Bank Review – Overview of PNC Bank Accounts, Loans and More
Here’s Why Bank of America Just Closed Your Credit Card Without Telling You
2014 Academy Award Statue Valued at Just Under $400
Why You Could Start Seeing Your Credit Score on Your Credit Card Bills
How to Host Your Academy Awards Viewing Party on a Budget
Warren Buffett Reveals His No. 1 Investment Strategy That Anyone Can Follow
Your ATM’s OS is a Decade Old: Here’s Why Banks Are Scrambling to Update It
What You Need to Know About Obama’s $3.9 Trillion 2015 Budget
Discover What a Discover Bank Online Savings Account Can Do For You
4 Tips to Cut Your Monthly Bank Fees
Here’s Why One Analyst Says Bank Stocks Are Going to Double
How Ben Bernanke Earned $250,000 in 40 Minutes
Visa and MasterCard Join Forces to Protect Your Card from Hackers
China's local government debt may be £1 trillion more than estimated
China may have underestimated the extent of the black hole in local government finances by as much as £1 trillion, the country's former finance minister has said.

Xiang Huaicheng said that the extent of debt among the 10,000 financing arms operating on behalf of China's local governments was difficult to calculate.

“It seems the central government’s debt level is quite transparent, while local government debt isn’t, and therefore it’s not easy to get a clear picture,” he told delegates at the Boao Forum this weekend.

Mr Xiang said that based on his calculations, local governments in China may have amassed more than 20 trillion yuan (£2.1 trillion) of debt, almost double the figure given in a 2011 report by the National Audit Office.

However, Mr Xiang, who served as China’s finance minister for five years in the aftermath of the 1998 Asian financial crisis, told the audience that the country's debt pile posed no immediate threat because it still represented a small figure relative to its rapidly rising economic output.

Debt as a percentage of gross domestic product (GDP) stood at just 37.8pc in 2011 and 40pc last year, said Mr Xiang.

"Some problems should not be ignored, although the debt issue is not so serious," he said.

Central government efforts to protect Chinese GDP growth levels meant that local governments were encouraged to bring forward a vast range of infrastructure and other public spending projects in the months after the collapse of Lehman Brothers in 2008.

Christine Lagarde, managing director of the International Monetary Fund, urged China to keep a close eye on local government spending.

“We recognise some progress has been made by the central authorities to keep that level of indebtedness and the local public finance under better watch,” she said at the forum on Sunday.

“To make sure the borrowing by local authorities is actually kept under control and not diverted through various agencies or off-balance sheet structures, is critical to actually keep public finances under control.”

Wen Jiabao, China's former Premier, said last month that the government would work to strengthen its management over the debt of provinces and municipalities.

Hey Ladies: Don’t Miss Out on the Broke Boyfriend Tax Exemption
3 Ways to Fix Your Finances in One Hour for Daylight Saving Time
IRS Reports This Year’s Average Tax Refund is $3,034
How to Start Saving Money for Your Baby’s College Education
How to Find Free Tax Preparation in Your City
IRS Wants to Pay You $25,000 for Saving Your Tax Return
5 Secrets Your Bank Doesn’t Want You to Know
How to Handle the 5 Most Awkward Money Situations
4 Tips to Cut Your Monthly Phone and Cable Bills
Stop Wasting Money Because You Won’t Admit You’re Old
Amazon Prime Price Hike: Is It Worth It?
10 Tips for Winning Your March Madness Bracket and Some Extra Cash
I Lost My W-2! What Should I Do?
4 Cheap, Fun Ways to Celebrate St. Patrick’s Day
What Four Leaf Clovers and Interest Rates Today Have in Common


Visit Statistics