China Debt Costs Rise 17.4 pc in Jan-Feb

In the prior post on the subject, China Jan-Feb Govt Revenue Up 6.3 pc, Spending up 12 pc, I missed the rate of increase in debt servicing costs: 17.4%.

More than double the rate of increase in revenue and almost 50% more than the rate of increase in spending. This is ahead of budget projections:
Wherein, in revenue and expenditure in the monthly data, first announced debt interest expenses over the same period. Two months ago, the national debt interest spending 55.1 billion yuan, an increase of 17.4%.

  According to the 2016 budget report, the central government debt balance of 12.59 trillion limit, projected annual debt service expenditure 329.9 billion yuan, an increase of 15.1%. And in 2015, the central government debt interest expenditure was 286.6 billion yuan, an increase of 11.3%.
Debt costs for local governments are falling thanks to the issuance of munis:
Hefei Mayor Zhang Qingjun two sessions this year on the team, said the statement, issued replacement can save bond interest payments, reduce the financial burden, but also extended the debt maturity to avoid systemic risk. He Hefei, for example, in 2015 issued a total of 11.16 billion yuan in Hefei replacement debt issuance costs roughly 3.5% of the original cost of debt of 6.5% through the issuance of replacement bonds, the average debt maturity was extended for six years, to help save 330 million interest yuan.

  2015 local government debt bond scale displacement of 3.2 trillion. Finance Minister Lou Jiwei end of last year, said 10% decrease cost of debt of local governments has been replaced before to 3.5%, the estimated annual interest expense savings of 200 billion yuan for local govt.

Sina: 1至2月财政收入超预期增长 债务付息支出增长17.4%

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