China Unlikely to Have a Debt Crisis in Near Future: Gov. Report08-16 17:44 Caijing
A government report backed by the State Council said the China has "small" chances of encoutering a debt crisis with the government's liability ratio at middle levels among its peers in the world.
The Chinese government has a net liability of 11.3 trillion yuan at the end of 2010, the report issued by the Development Research Center of the State Council said.
The report comes amid concerns about burgeoning debt in the world's second-largest economy as Beijing cranks up stimulus once again to spur growth.
Even including hidden debts, the current debt-to-asset ratio in China remains at world-wide average levels, with risks "controllable", the report said.
Under a high-risk case scenario, China's debt levels could rose to 30 percent of GDP by 2020, compared with around 26 percent for a prudent scenario, it said, adding that such debt levels are completely safe.
It warned at the same time over declining revenue growth amid an economic slowdown. Therefore, the government needs to foster new growth engine to secure a relatively faster growth rate, it said.
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