In Session 12 of Municipal Debt: Defusing the Simmering Local Government Debt Crisis on Mar 27, Prime Minister of Finance Lou Jiwei stated that debt swap will not incent local governments to report false debts. 

He explained that the trillion-debt swap quota is used to swap the 53.8% debts that are due this year, which is not related to the debt level reported by the local governments. Moreover, as old debts accumulate, the new debt quota for the local governments reduces. Thus forging the debt swap would be an unwise choice for the local governments because debt issues of the local government can only be solved by rebalancing the expenditure and income.