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China's top auditor warns of local government debt risk

Debt swaps, which allow local governments to convert their debt to low interest bonds, should also be carried out effectively and sensibly, Lou said, easing the debt burden without disrupting the broader economy.

China says local government debt soars

China on Monday announced the results of a long-awaited debt audit, revealing that liabilities carried by local governments ballooned to 17.9 trillion yuan (USD 2.95 trillion) as of the end of June.

Major irregularities in bank loans in China: Auditors

State-owned Chinese banks granted loans worth USD 4.6 billion without proper procedures or necessary guarantees, auditors said Thursday, amid fears of a banking crisis due to bad debts.