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July 19, 2011

Debts mount at China's Ministry of Railways

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DEBTS at China's Ministry of Railways (MOR) reportedly reached Yuan 1.98 trillion ($US 306.27bn) at the end of the first quarter of 2011 causing its asset-liability ratio to reach 58.24%, reports CNTV, China.
The ministry plans to invest Yuan 745.5bn in infrastructure this year and will issue short-term financing bonds of Yuan 20bn on July 21, the third time it has done so this year, to support construction, purchase of locomotives and other capital equipment.
In addition to the first two bond issuances, which raised Yuan 20bn and Yuan 15bn, MOR has also issued three super-short-term financing bonds of Yuan 10bn each, as well as a medium-term note of Yuan 20bn so far in 2011. This takes its total issuances to Yuan 105bn after July 21.
In 2010 China invested Yuan 842.65bn on infrastructure, which was up 19.6% from the previous year. The country completed work on eight high-speed lines during the year which totaled 1554.3km while construction began on 18 new high-speed projects.

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