Chinese authorities support financing for local projects

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Bloomberg Agency have reported that regulators for the People’s Republic of China have recommended banks to keep investing in local projects.
Despite bankers fears to provide loans, caused by a low probability of some projects to repay debts, the authorities in China have insisted that any applications for new projects (since 2014) should be approved. The statement, made by the Chinese State Council together with the Chinese National Bank and the Ministry of Finance of China testifies to this fact.

Towards the end of 2015’s first quarter, Chinese authorities have reported that regional debts amounting to 1 billion yuan, must be converted to minicipal bonds. Experts note that the authorities intention of the Celestial Empire to continue investing in regional projects are aimed at protecting the housing market in China and also the wider economy.

According to official data the general share of doubtful credits to China amounts to approximately 1.39%, however most economists believe that in reality these statistics should be less optimistic.