Local govt debt rules eased

Curbs on debt issues by local government financing vehicles are being eased to boost funding for infrastructure investment that will offset slowing economic growth.

The National Development and Reform Commission, which regulates State-owned enterprise bond issues, on Wednesday said that it had lowered the debt-to-asset ratio for LGFVs that need to provide guarantees to 65 percent. It cut the ratios for AA+ and AAA rated LGFVS to 70 percent and 75 percent, respectively.

It did not specify what the previous ratios were.