Our Local Government Financing Platform Construction, Operation And Risk Research

Local government financing platform has been around a long time; local government financing platform is the funding needs of local government and local governments do not match the supply of funds generated under the contradiction in a sense. In our special legal and political system, the central government against local government in the context of debt financing, while local governments were desperate to get a lot of money developing, building local infrastructure related. To solve this problem, local governments began to establish platform for the company. In particular the international financial crisis, China's response to the adverse effects of the financial crisis, the implementation of large-scale investment stimulus program, which the local government to further promote the emergence of large-scale financing platform, the number and size to achieve unprecedented levels, in prevent the economy from slowing down too quickly to support economic recovery in prices, while warm, local government financing platform for the existence of financial and fiscal risks, but also given rise to great concern. In this essay, the existence of local government financing platform for the main risk, propose measures to prevent risks related to, and financing platform for companies to build and run a systematic exposition. First, the author of financing local government build and run the platform were discussed, including financing platform specific definition, characteristics, development history and the type of operation, raising capital, sources of funds and repayment problems in this based on the further financing platform in the development process of the risk inherent issues of a comprehensive discussion: that is, from the financing of other Financing Body of extrusion, the rating on the absence of the project loan, banks and other financial institutions within the system risk and Bank lending over the lack of liquidity resulting from four levels of local government financing platform for the existence of financial risk assessment; from the lack of a system of laws and regulations, lack of revenue and massive debts to the financial payment of compensation arising the risk of financial irregularities existing security guarantees and the risk of financing a single project risk due to four aspects of the financing platform for the assessment of financial risks; from a macro perspective, assessment of the entire allocation of financial resources and the irrational inefficient use of financial resources exacerbate the risk of structural imbalances in the national economy; also reduce the effect of the macro policies are described, pointing out that the local government financing is not conducive to large-scale financing platform for the central government's macro-control; Finally, from an administrative evaluation pointed out the new local government financing blindly invest in the platform gave a brief assessment of the risks. Third, how to prevent the risk of local government financing platform and standardize the financing of building the platform and the feasibility of targeted countermeasures: to establish and improve a financing platform conducive to the healthy development of the systems and regulations, and gradually dissolve the local government financing platform may lead to the risk; rational planning local infrastructure, a clear debt security; integrated multi-channel financing, risk diversification; strict implementation of the security risk prevention measures; to strengthen the company's financial management and financing platform; strengthen the banking sector and other financial institutions, etc. credit management. The six policy recommendations to form a complete system of integrated solutions, both the macro perspective, and micro perspective; both overall grasp, there are local phase grasp; both theoretical level, there are practical level, the formation of by treating the symptoms, sparse block binding, classification management, and gradually standardize the overall approach for the promotion of investment and financing systems, improve the financial system and debt management system, further transform government functions and speed up the construction of China's urbanization and regional economy has made significant theoretical and practical significance.