China is giving the country’s provinces the opportunity to use previously unused bond quotas worth 550 billion yuan, equivalent to USD 82 billion, to stimulate the economy. Bloomberg News reports.
Of the amount, 300 billion yuan will cover ongoing spending at the local level, while 250 billion yuan is earmarked for investments and major projects during the fourth quarter.
Regions with stronger economies will be prioritized in the allocation of investment funds.
The measure is part of Beijing’s efforts to achieve this year’s growth target of 4.5 to 5 percent.
At the same time, local authorities are under pressure from debt burdens and declining revenues from land sales.
