Sovereign Debt Crisis Analysis In The Perspective Of Contingent Liabilities

Finance is the stakeholder of ultimate social economic risk, in relation to the nation economy and the stability of society. Thus financial risk problem is the common focus. Since the 2008 financial crisis, Iceland, Dubai, Greece and other countries ensued sovereign debt crisis, and caused a great influence for the world economy. Meanwhile, these sovereignty debt crisis in a certain extent also overturned people's impression of sovereign debt crisis before. Sovereign debt crisis is not only a patent in developing countries. More importantly, the biggest threat triggered from the government's direct threat for government contingent liabilities. The government contingent liabilities has the characteristics of uncertainty and the concealment of the difficult to measure etc, so once out broken, often causes unexpected impact. So it is essential for the government to analyze the sovereign debt crisis case in the view of contingent liabilities.Befor the analysis of the sovereign debt crisis case, this paper first summarized the government contingent liabilities or related theory, analyzed the formation mechanism and or debt risk conduction paths from the essence and financial aspects of market economic system. From the formation mechanism of the debt and risk transmission path to see, the government government contingent liabilities has its certain inevitability. As the government dissolving the social public risk means, financial must bear the responsibility of the last out. Therefore, the government contingent liabilities is also the financial costs of pay in solving the public risk. Howerver, it is the expected of the financial out the liabilities that strengthen the main body of the moral risk. producing a lot of financial opportunism behavior.After a general analysis of debt theory and the empirical research, this paper analyzed our government contingent liabilities to the current situation and existing problems. And summarized some experiences and lessons from the analysis, which has the vital significance for our government to guard against and dissolve the debt crisis.