The Study Of Emc Loan Guarantee System

As a developing country, China is facing tremendous pressure of energy reduction when developing the economy and maintaining economic stability and rapid development. EPC should be set and developing as a Market-oriented mode of energy service. EMC working based on EPC should financing for Energy efficient projects, but they facing financing difficulties because of some defects, such as small scale, fund shortage and lack of credit records. Credit guaranteeing is a rapid and important way to increase the credit of EMC as other Small and Medium Enterprises (SMEs). EMC Loan Guarantee has developed in China with implementation of WB EMC Loan Guaranty Projects. In the context of energy service industry continuously pushed forward, we should ensure effective and sound development of EMC Loan Guarantee.EMC Loan Guarantee combines the EPC and Small and Medium Enterprises (SMEs) credit guarantee. At present in-country studies of EPC focus on introduction of EPC, run mode, financing mode, development and obstacles in China, risk assessment, risk management theory, etc. Researches of Small and Medium Enterprises (SMEs) credit guarantee include analysis of current situation, the credit risk assessment, risk pricing and risk control, etc. While researches about EMC Loan Guarantee are not enough, just stay in the brief introduction of WB EMC Loan Guaranty Projects, development and obstacles in China. There is no further study of EMC Loan Guarantee as a whole.This paper proceeds as follows. We firstly introduce related concepts of EPC and Small and Medium Enterprises (SMEs) credit guarantee, summarize the situation and faced adverse conditions in China, the execution mode, characteristics and development scale of WB EMC Loan Guaranty Projects, reveal the obstruction of this project. Secondly, build the existing EMC Loan Guarantee System. Analysis this system, the participants and their contracts and introduced processes of this system. Then identify the risks of the system overall, analyze the stakeholders of these risks qualitative, and the deliver mode of risks in the system, summarize the transmission characteristics, include multi-directionality, variability, complexity and lack of uniformity. Then we come to a conclusion that EMC and guarantee agencies undertake more risks than other participants, the benefits and risk is not equivalent between participants, so we bring forward risk control methods and advices. At last, to ensure perform efficiently of EMC Loan Guarantee System, we should work hard in three areas to support this system: establish risk sharing mechanism, found trust mechanism between participants and improve the external environment of EMC Loan Guarantee System.