Hohhot Government External Debt And Risk Management Study

Being an important form of using foreign capitals and symbol of reforming andopening, loans from international financial organizations and foreign governments notonly enlarge the amount of capital that the economic construction needs, the mostimportant is that it lays special emphasis on energy resources, transportation, otherkey departments and relatively undeveloped areas, in the meantime, it also plays anactive role in introducing international development experience, promoting systemand technology renovating. Because these loans are sovereignty foreign debts whichpresuppose the government's credit and depend the ability of payment.It can easilylead to payment crisis and a serious of social problems, if not thinking of thedurability of the finance, utilizing the foreign debts unrealistically, ignoring the riskmanagement, South-east crisis will be the best example.Therefore, according to thestandard of economic development, to determine the reasonable loan scale andstructure, improve the management and supervision system, increase the benefits soas to avoid and reduce the financial risk are the important topics for theory studyingand practice of government's foreign debts management.