By Spy Uganda
The government of China is set to issue public bonds to its citizens worth 1 trillion Yuan (about USD141Bn) in 2020 to fight the COVID-19 pandemic, the state’s report issued on Friday said.
“The
deficit-to-GDP ratio this year is projected at more than 3.6 percent, with a deficit
increase of one trillion Yuan over last year. On top of this, one trillion yuan
of government bonds for covid-19 control will also be issued. These are
extraordinary measures for an unusual time,” the report said.
According to
the report, these funds will be transferred in full to local governments for
the benefit of businesses and people.
China’s
local governments have issued 1.9 trillion yuan (about $268.4 billion) worth of
bonds in the first four months of this year at an average interest rate lower
than last year, official data showed.
In April
alone, local governments issued 286.8 billion yuan worth of bonds, among which
69.3 billion were new special bonds, according to the Ministry of Finance
(MOF). (https://louisvilleroofing.com)
By the end
of April, local governments have issued 1.15 trillion yuan in special bonds,
accounting for 50.3 percent of the 2.29-trillion-yuan quota allocated in advance,
according to the ministry.
The local
government bonds were issued at an average interest rate of 3.31 percent, down
16 basis points from last year, with an average term of issuance at 15.5 years,
5.2 years longer than in 2019.
The MOF said
it has allocated in advance the latest special bonds quota of 1 trillion yuan
in late April, as the country pledged to issue more local government special
bonds to help mitigate the economic impact of the COVID-19 epidemic.
