More than 10 trillion local government debt in credit "black hole"

Although the auditor audit results of local government debt is not "out", but the personage inside course of study basic judgment debt, schedule 80 galvanized steel pipe a dramatic increase of 10.7 trillion at the end of 2010.Chengxin group executive vice President of the Shanghai newspaper reporters, according to their estimates, so far, China's local government debt balance between about 15 trillion - 18 trillion.

Which can be divided into two parts: one is to measure explicit debt, according to public data mainly includes the Treasury issuing local government debt, 60mm thick wall seamless carbon steel pipe urban construction investment bonds, platform loan, trust, etc.; 2 it is difficult to open data statistics of the implicit debt, including mat endowment construction, the BT (construction - transfer), the issuance of wealth management, private equity and other hidden debts, which accounts for the "leading role".

Not only such a large scale of local government debt is not yet clear, as a publisher, is also local government credit information is not yet clear.The main two parts of local government ratings, carbon steel ERW A106 steel pipe but was not clear."Treasury issuing and pilot is a part of the local government debt, this part of the regulators did not require a rating, also didn't begin rating, another part is the rating agencies in the city for debt, according to the need of local government, but only as a financing platform company government of such issuer rating reference, limited to the rating agencies, has not publicly." He told reporters.

This is the overseas market situation is very different. For a special kind of local governments while a review of the group, A106 High quality carbon structural steel tube but at present, including the standard &poor's and fitch, moody's, the three major international rating agencies rating to local governments in different countries, and our country in view of the local government's credit rating is still missing in the field of rating.

But this kind of defect are expected to be gradually filled. In July this year, the ministry of finance announced that in the future in the process of local government debt on its own, will actively create conditions to gradually set up a credit rating system. Reporters recently learned that regulators are to establish credit rating system of local government, is expected to be gradually introduced in the future.