Debt-swap plan of local governments set to be expanded

Central authorities won't bail out troubled borrowers, according to finance minister

China is likely to expand its bond-for-debt swap program to address the problem of legacy local government debt, Finance Minister Lou Jiwei said on Friday, adding that the central government does not intend to bail out local governments that cannot repay their debt.

His remarks reflected the central government's two-pronged strategy to address the thorny local government debt issue.