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New treasury bonds to finance the west
( 2002-04-08 09:24 ) (1 )

The central government on Sunday decided to issue 150 billion yuan (US$18 billion) in treasury bonds for construction this year, according to the State Development Planning Commission.

Jiang Weixin, vice-minister of the commission, said:"Almost 40 per cent of the tremendous investment will be directed to the western region."

The vice-minister said the money will be used mainly for treasury bond-financed projects under construction, development projects in the western region, the technological transformation of key enterprises, water diversion from the south to the north, and water-resource conservation in Beijing and Tianjin.

Meanwhile, the government will channel money into rural infrastructure and education, and facilities for procuratorial and judicial and public-security organs.

There is still scope for issuing more long-term treasury bonds for construction without incurring great risks, Jiang said.

The official said the government made its decision after considering the fact that people's savings deposits have increased considerably, banks have sufficient funds, interest rates are low and the ratio of national debt to gross domestic product is still within safe limits.