China Plans Serious Steps in Financial Politics

The Chinese government once again stated that it is going to follow stronger financial politics to support its economy.

Within the framework of economy stimulation it is planned allocation of big volume of funds to support perspective infrastructural projects. It is also planned a program of tax burdens' reduction for small business. Current plans include an idea to simplify a process of agreement on building of stores with free trade.

Ministry of Finance published information that at the current moment it considers opportunity of allocation of IOU printing to the local government and to regional. This year Chinese regulator has already set limits of such obligations, and now quota is 16 trillion CNY (2.5 milliard USD).

Program with volume in 3.2 trillion CNY was begun to simplify debt burdens, which depends on regions. The reason of the program is to give an opportunity to the local governments to print IOU with perspective on raising funds that were intended to pay securities placed earlier on higher interest rate off.