China’s debts hit 28t yuan

China’s government debts totaled about 28 trillion yuan by the end of 2010, accounting for 71 percent of the GDP, the Beijing Times reported Tuesday

Citing a report released by Standard Chartered Bank, the newspaper reported that the government’s debts include the central government’s official debt and debts of State policy banks.

The money owed also includes the estimated debts of local governments and local financing platforms, debts of the Ministry of Railways and the costs of recent joint-stock bank restructuring, according to the report.

The report shows that the local financing platforms will be pressured to begin repaying capital by 2012 to 2013. It is estimated that local governments and their financing platforms are expecting a total debts of 14.7 trillion yuan, with accumulated interests of 880 billion yuan. This debt accounted for 21 percent of their tax revenues in 2010, the newspaper reported.

Source: China Daily

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