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Reports of 800b yuan railways fund 'untrue'

Zoom  Zoom Issue Date:2011-11-09   Source: Xinhua   Browse:544

BEIJING - China's Ministry of Railways said Monday that reports about it hoping to get 800 billion yuan ($126.56 billion) from the government to fund its railway projects were untrue.

 

The statement came after media reports said the ministry had planed to get 400 billion yuan from the government and another 400 billion yuan from bond issuance as the recently-secured 200 billion yuan fund was far from enough to resolve its financing difficulties.

 

The rumors that this financing package is still under discussion, which the reports quoted from an interview with "an official from the ministry's finance department," is also false, the ministry told Xinhua.

 

The ministry said that it has recently disclosed its financing and the use of the funds to the media.

 

The ministry said on Nov 4 that it will pay off some of its creditors before Nov 20 to ensure funding for railway projects that are currently under construction.

 

"With the support of relevant departments, the ministry has enhanced its fundraising efforts and will soon channel the funds to project contractors," the ministry said in a brief statement. But the ministry did not provide further details.

 
 
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