Beijing : China’s top auditor warned of a debt risk in the world’s second largest economy due to unbridled borrowing by local goverments and called for an evaluation and early warning system to contain any instability. National Audit Office (NAO) chief Liu Jiayi said “certain local governments have difficulty in repaying their debt.”
There is no official public data on size of the problem, but the NAO estimated direct local government debt at 10.9 trillion yuan (about USD 1.8 trillion) at the end of June 2013, state-run Xinhua news agency reported. -pti
