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Chinese Finance Minister Lan Fu said on Saturday that his country will adopt a package of additional targeted financial policies in the near term to boost the economy.
He added, “The package includes raising the debt ceiling on a relatively large scale in one payment to replace the hidden debts existing on local governments and help them deal with debt risks.”
He continued, “Countercyclical adjustments include not only policies that are already subject to relevant decision-making procedures, but also other policy instruments under consideration, such as debt issuance and increasing the deficit.”
He pointed out, “There is still a lot of room for China‘s central finance to issue debt and expand the deficit.”
He pointed out, “China will issue special treasury bonds to support large state-owned commercial banks to replenish their ‘Tier-1′ core capital with the aim of enhancing banks’ flexibility to face risks and their lending ability in order to better serve the development of the real economy.”