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Impact Story

PPIAF Helps the Chinese Government Move Toward Credit-Based Borrowing by Sub-National Entities

China’s sub-national fi nance reform process that began in 2009, with support from Public-Private Infrastructure Advisory Facility (PPIAF)’s Sub-National Technical Assistance (SNTA) Program, took a major step forward in September 2014. After 20 years of prohibiting bond issues by local and regional governments, the Chinese National Peoples’ Congress approved legislation that enables sub-national governments to return to the Chinese bond market. This transformative change broadens the sources for local infrastructure fi nancing while making it more transparent and based on institutional creditworthiness.

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