The Risks Of China's Foreign Debt

Since reform and opening up, the foreign debts expansion rapidly in our country, the use of foreign debts to our country expand capital accumulation, speeding up economic construction and development had played a great role. But we shall see, With the rapid growth of the scale of foreign debts, the country's debt-servicing pressures are increasing, while the structure of our foreign debts are not reasonable, the current short-term foreign debts accounted for the proportion of total balance of foreign debts has been far exceeded the international recognized warning line, the international commertial loans accounted for the proportion of the total foreign debts up to 70%, foreign debt risk in our country appears gradually. International financial deficit and debt by the scale of the debt crisis problem caused a lot, Greece is a typical example. October 2009, Greece new government announced its budget deficit accounted for 12.7% of GDP, and public debt accounted for113% of GDP, this ratio is far higher than the eurozone regulation, and then international three credit rating agencies have cut Greece's sovereignty for credit rating, along with substantial turmoil in international finantial markets, Greek official outbreak the debt crisis and opened the prelude to the European sovereign debt crisis This promoted us to need more and more emphasis on risk control our own sovereign debt, in the context of globalization of China foreign debt risks to guard against and dissolve, thus safeguarding national financial security, maintaining social stability.Foreign debt is not only political issues and economic issues, but also a finantial problem. It is an important component to the state finance and is secured by way of a credit. It can help the country's fiscal adjustment in economic development. Our county's foreign debt including sovereign debt borrowing and non-sovereign debt borrowing two parts. The two parts whether fends borrowed from also or borrow and integration, if the maturity of the debt is not repaid, will eventually be borne by the state finance responsibility to increase our budget deficit, increase financial risk, Therefore we should improve existing debt management system, drawing on the international experience, to reduce the risk of foreign debt, thereby to reduce the state's financial burden. This is also this paper studies the important subject debt risk meaning.This paper is divided into five parts. The first part introduces the related theory about foreign debt risks, including the basic concept and foreign debt risk of economic theory, the second part of our country from the current size and structure of foreign debt to analyze the presence of foreign debt risk situation; The third part focuses on analyzing the causes of our foreign debt risk; The fourth part are two countries from Russia and Greek debt risk control of reference; The final part of proposed control our foreign debt risk countermeasures.