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China will issue 2.3 trillion yuan (approximately $325 billion) in new special bonds over the next three months to help revive its struggling economy, the finance minister said. Mr. Lan Huan attended a press conference in Beijing. “Special bond funds totaling 2.3 trillion yuan may be arranged to be used in various places over the next three months,” Lan said, adding that China has “no obligation to issue debt” to finance its finances. He pointed out that there was still room to “expand the deficit.” He also said that the Beijing government is “accelerating the use of additional government bonds, and special long-term bonds are also being issued.” The government also plans to “issue special bonds to support large state-owned commercial banks,” Lan said, without disclosing the amount. Chinese authorities are working to reverse a trend of slowing growth and hit a 5% growth target this year, a far cry from the double-digit growth that has sustained the Asian giant for years.
The announcement is part of one of the largest economic stimulus packages in recent years, aimed at strengthening the banking system, revitalizing the real estate market and reducing local government debt. The plan follows a series of measures launched in recent weeks, including lower interest rates and more liquidity for banks, to address the multi-year housing crisis and chronic problems plaguing the world’s second-largest country. It is part of a series of measures by the Chinese government to end the consumption slump. -The largest economy. The special bonds planned by the Chinese government are specifically aimed at increasing capital available to banks, as part of encouraging them to lend in hopes of reviving sluggish consumer spending. China is also preparing to allow local governments to borrow additional funds to finance the acquisition of unused land for development, as the country seeks to break out of a long-term slump in its real estate market.
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© Agenzia Nova – Reproduction reservation
