The Debt Risk Management Of Foreign Government Loan Of Inner Mongolia

It has been found that being an important form of utilizing foreign capitals and symbol of reforming and opening up to the outside, the foreign government loan has effectually modified the situation of insufficiency of construction funds in Inner Mongolia Region, and also greatly promoted the development of economy and a variety of social industries of the region. Meanwhile, it's dual nature as foreign debt determines that the debt risk of utilizing foreign government loan in Inner Mongolia exists objectively and appears clearly in various forms. It is closely related with fiscal risks and is an important factor which results in local fiscal risks.In the meaning time, it has great association with bank credit risks, and will endanger bank credibility and stability of financial system when serious. At present, it is imperfect in debt risk management system of foreign government loan and some problems exist, mainly including:(1) Lacking of scientific system of investment and financing system;(2) lacking of effective debt management agencies;(3) Lacking of debt management responsibility restraint mechanism;(4) insufficient preparation for debt repayment task;(5) inadequate financial administration policies;(6) the increasing pressure of payment to the onlending banks. If these problems are not solved in time, these can make the risk of foreign government loan out of control and increase the rate of debt crisis, and will endanger the economy and social stability. Therefore we must realize the risk of foreign government loan in Inner Mongolia, reinforce the research and management and establish effective measures to dissolve it.This paper begins with introducing the theories and methods of foreign government loan management, which is based on the actual case of the debt of the foreign government loan and some experiences of foreign government loan management in onlending bank, using development economics, finance, international finance theories and knowledge, analyses and compares the use of foreign government loans in Inner Mongolia from scale, speed, structure, etc through collecting, collating plenty of practical cases and data. According to the problems existing in the debt management of foreign government loan, this paper puts forward five specific suggestions to strengthen the administration of foreign government loan, at last introduces a specific case about the use of the combination of forward transactions and bank credit products to lower the debt risk of foreign government loan.