Chongqing and Hubei Reduce Debt in 2015

official statistics showed that in 2015 the Chongqing municipal government debt balance was 341.2 billion yuan, compared with the end of June 2013 debt of about 357.5 billion yuan, negative growth of about 4.6% or about 16.3 billion debt reduction yuan. Hubei provincial government in 2015 debt balance of about 469.8 billion yuan, compared with the end of June 2013 debt data, negative growth of about 8.8% or about 45.3 billion yuan of debt reduction.

Two and a half years, at the national local government debt grew by about 47 percent on average background, Chongqing and Hubei is how successful debt decreased rather than increased? The answer varies, but the core means is innovative government financing model.
How did they do it? Cheaper credit subsidized by the central government and private investment in infrastructure:
Huang Qifan said that in the debt treatment, Chongqing replaced by 33 billion yuan bonds to obtain credit to ease debt pressure, in addition to Chongqing, get new local government bonds of about 20 billion yuan, and access to local support policy banks, such as Chongqing obtain CDB 15 year 28 billion yuan loans.

Secondly, local government and social capital by promoting cooperation (PPP) mode to resolve the stock of debt, and to attract social capital to engage in public service building.

Huang Qifan said the local government in promoting PPP reforms, the debt financing platform for the social partners into corporate debt. Chongqing push PPP projects last year, making this one of the debt write-down. And society is also involved in local government infrastructure investment.

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