Lanfo'an: It is estimated that the cumulative savings will be about 600 billion yuan in five years after the replacement

On November 8th, Minister of Finance Lan Foan said that the replacement, which has been intensively arranged for 8.40 trillion yuan in the past three years, has significantly reduced the scale of hidden debt that local governments need to digest in recent years, allowing local governments to unload their burdens and go light. At the same time, since the interest rate of statutory debt is much lower than the interest rate of hidden debt, the replacement will greatly save local interest expenses. We estimate that the cumulative savings in five years can be about 600 billion yuan.