China Extends Refinancing Support for LGFV Debt Until Mid-2027

Chinese authorities told state banks to extend support to ensure some of the nation’s most indebted municipalities can refinance through mid-2027, according to people familiar with the matter.

Under a new directive issued last week, banks and provincial governments should help local financing vehicles repay domestic and offshore debt maturing no later than June 30, 2027, said the people, asking not to be identified discussing a private matter. That’s a 2 1/2-year extension of a previous plan calling for assistance with debt maturing before the end of this year, including loans, bonds and so-called non-standard liabilities, the people said.

The ...