Latest news with #localgovernmentdebt
Argaam
5 days ago
- Business
- Argaam
Société Générale hired as primary dealer for local gov't debt instruments
The Ministry of Finance and the National Debt Management Center (NDMC) signed an agreement with Société Générale to appoint the latter as a primary dealer for local government debt instruments. In a statement, NDMC said Société Générale joined five international financial institutions previously enrolled in the primary dealer program. They include BNP Paribas, Citigroup, Goldman Sachs, JPMorgan, and Standard Chartered. This is in addition to the 10 local financial institutions: Saudi National Bank (SNB), Saudi Awwal Bank (SAB), Bank AlJazira, Alinma Bank, Al Rajhi Bank, Albilad Capital, AlJazira Capital, Al Rajhi Capital, Derayah Financial, and Saudi Fransi Capital. NDMC noted that this agreement is part of ongoing efforts to achieve the goals of Saudi Vision 2030 under the Financial Sector Development Program through enabling financial institutions and developing an advanced capital market. It also highlighted the role of the NDMC in enhancing access to local debt markets through diversifying the investor base to ensure sustainable access and support the development of the secondary market.
South China Morning Post
20-06-2025
- Business
- South China Morning Post
Word is bonds: China's provinces use special-purpose funds to pay debts
Hunan has become the first province in China to use the proceeds of special-purpose bonds to guarantee government payments to enterprises, with 20 billion yuan (US$2.78 billion) allocated for this year. The inland province made the adjustment to its annual fiscal budget last month, marking the first time the bonds – typically earmarked for revenue-generating construction projects – will be used to cover government arrears. Proceeds will be distributed based on eligible outstanding debts from existing investment projects, according to a statement from the province's department of finance issued last week. The department said the disbursements will be prioritised to help cities and counties across Hunan complete ongoing construction, clear their obligations and reduce fiscal risk. David Wong, a lecturer at Hang Seng University in Hong Kong, called the move 'a step in the right direction,' but warned that the 20-billion-yuan sum could be 'a drop in the bucket' compared with the scale of local government debt 'It remains unclear which arrears will be prioritised or which firms will actually receive payments,' he said. 'The more complex issue is that this is not simply a matter of 'government owing enterprises' but a complex web of entangled triangular debts.' Criss-crossing chains of obligation make the repayment picture opaque for a number of localities, Wong said. 'In many cases, local governments have indirectly incurred debts through state-owned enterprises (SOEs), which in turn owe money to each other. Some SOEs are involved in circular guarantees and cross-debt relationships with both local governments and private companies.'
