Local govts get nod for debt issues

Chinese lawmakers will soon give the green signal to local governments for debt issuance, a move that will help finance the nation's $586 billion stimulus package.

A high-level meeting of the National People's Congress Standing Committee has reviewed a State Council proposal to allow local governments to issue bonds. But no details of when and how the bonds will be issued were given.

Caijing, a Chinese magazine, reported earlier that the central government would allow local governments to issue bonds of up to 200 billion yuan this year.