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China tries to defuse local debt risk with $200bn refinancing tool - Nikkei Asia

BEIJING -- China plans to let some local governments tap a new bond issuance scheme to help them roll over debts held by struggling infrastructure developers.

The move represents China's latest effort to defuse the risks associated with local governments' off-balance-sheet debt. Much of this hidden debt stems from so-called local government financing vehicles (LGFVs) set up to pay for roads and other projects.

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