City To Use Issued Bonds to Subsidize Government Housing

City To Use Issued Bonds to Subsidize Government HousingCity government will be issuing local bonds that is said to be around 3.6 billion yuan starting next month. The bonds will be used for the construction of government subsidized housing that are located near public transit and educational facilities.

This is the first time that the local city government has issued local bonds that exceed the 3 billion yuan mark. Bonds issued in 2011 were at 2.2 billion while in 2012 the bonds were at 2.7 billion yuan respectively and based on budget reports the government is planning to pa off its debts totaling 30 billion yuan. The city borrowed around 60 billion yuan from banks in 2009 and in 2010 and last year local governments were not allowed o borrows from banks so the city had to raise their funds through projects and enterprises but still needs to pay off its remaining debts.

The three state owned enterprises in the city have raised around 44 billion yuan and invested more than 50 billion yuan that was spent in projects which included construction plans of the city’s Metro.

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