LGFV Debt Restructuring

Estimate interest savings from swapping off-balance-sheet LGFV debt to sovereign bonds.

Debt Swapped (Trillion RMB)

Avg LGFV Rate (%)

Special Bond Rate (%)

Annual Interest Savings

Trillion RMB

Methodology & Assumptions

A simple interest rate differential model. Swapping high-yield "shadow" debt for lower-yield provincial/sovereign bonds extends maturity and lowers immediate servicing costs, though it does not eliminate the principal.