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China lays out ground rules to tackle local debt mess

Challenge is convincing financial institutions to make swaps, buy bonds

Published Thu, May 14, 2015 · 09:50 PM

Beijing

MORE than six years after China unleashed a record credit boom to shore up growth in the grip of the biggest global financial crisis since the 1930s, policymakers are starting to address the shaky financing that resulted.

In a template that could be expanded, regulators laid out ground rules for local governments to swap high-yielding, short-term loans for lower-cost, longer-term municipal debt.

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