Today’s doubling of the quota for local government debt swaps indicates that the central government believes the programme has so far been a success, even if banks have only been buying the new bonds under duress. The swap and shift to bond financing should strengthen local government balance sheets and also, in the near term, give a boost to economic demand.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services