China said to consider adding 1t yuan debt-swap quotas

China is considering allowing another one trillion yuan (S$219 billion) of local government debt swaps, according to people familiar with the matter. 

PHOTO: BLOOMBERG

JUL 14, 20154:09 PM

[BEIJING] China is considering allowing another one trillion yuan (S$219 billion) of local government debt swaps, according to people familiar with the matter.

The plan is yet to be finalized because the Ministry of Finance needs to discuss it with the National People's Congress and seek State Council approval, the people said.

The new quotas will be in addition to the two trillion yuan already granted as part of a program to convert high-cost existing debt maturing this year into low-yielding municipal bonds. The ministry didn't immediately reply to a fax seeking comment.

BLOOMBERG