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Datong’s Deep Debts Amount to 13 Billion Yuan

According to China Business, as of 2013, the City of Datong, Shanxi Province had accumulated debts exceeding 13 billion yuan. Datong paid off 2 billion in the first half of the year, with over 110 billion still outstanding. A few municipal construction projects have been suspended due to lack of funding. 

 A Datong city official indicated that the debts are reasonable as long as the local government can handle them. Last year Datong issued bonds in the amount of 600 million yuan. Bank loans make up the rest of the debts. In 2012 Datong had about 8 billion yuan of fiscal revenue. 
Datong is urgently looking for buyers or investors for its State-owned assets. These include more than 100 State-owned enterprises, 30,000 mu of reserve land, real properties held by financing platform companies, as well as tourist attractions such as the Yungang Grottoes. These assets are valued at 38 billion yuan. 
Source: China Business, September 18. 2013