|
Sheng also downplayed concern about debts owed by local governments that borrowed heavily over the past decade, in part to pay for building projects under Beijing's stimulus in response to the 2008 crisis. Some analysts worry the economy could suffer if local governments default, hurting the state-owned banking industry. An audit last year found local governments ran up debts of 10.7 trillion yuan ($1.6 trillion) over the preceding decade, equal to about one-quarter of China's annual economic output. Sheng said some local governments have paid down their debts while others are rolling out plans to manage them. "We are monitoring the situation carefully and right now the issue is under control," he said.
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.