Huang Qifan, Mayer of Chongqing, pointed out five methods to help local governments relieve stock and incremental debt issues at Session 12 "Municipal Debt: Defusing the Simmering Local Government Debt Crisis" on Mar 27. 

The five measures are:

1.      The Central Government can issue low interest rates and long-term debts for local governments to swap the old debts that will due this year.

2.      The Central Government can assist the local government to issue a certain number of new debts.

3.      Strategic banks such as China Development Bank can provide low interest loans for local governments.

4.      Local governments should promote public-private partnership, encouraging the public to participate in the infrastructure investment.

5.      Local governments should make use of other finance instruments, such as medium-term notes and corporation debts.