China local government debt rises to 17.9 trillion yuan

FXstreet.com (Łódź) - China's National Audit Office revealed the outcome of its local-government debt audit on Monday, which pointed to an surge in borrowing to 17.9 trillion yuan in June this year, which represents a 67% increase from 2010.

According to the report “China’s government debt risks are under control in general, but there are potential risks at some places.”

The rapid expansion of lending in China has provoked worries that the debt is becoming unsustainable and that it could lead to to the country's financial collapse such as that suffered by various Asian countries at the end of the 1990s.