Beijing intends to deal with local government debt in order to get the economic downturn under control, government representatives announced on Friday after a week-long parliamentary session. Details on aid for the economy and the real estate market, which some experts had called for, remained open. Local authorities often have high liabilities due to certain financing vehicles (LGFV). In the future, local governments are to be able to use ten trillion yuan (around 1.3 trillion euros) to reduce these off-balance sheet or „hidden“ debts and thus convert them into other debts. During its session from November 4 to 8, China’s highest legislative body, the Standing Committee of the National People’s Congress (NPC), passed a bill to increase the debt ceilings for local governments.