Minister of Finance Lou Jiwei said Thursday that the local government debt swap program has been expanded to 3.2 trillion yuan ($499.8 billion) this year, in a move to reduce the debt burden of local governments.
A 1 trillion yuan debt-for-bond swap program was launched by the Ministry of Finance in March, which allows local governments to convert high-interest debt into low-cost bonds that can be repaid at a future date. A move in June doubled the size to 2 trillion yuan.
