The Research On Debt Risk Of The Local Government Investment And Financing Platform

The research on debt risk and prevention mechanism of the local government investment and financing platform has important theoretical and practical significance for China’s economic development. The local government investment and financing platform is a great mechanism innovation of investment and financing system, which meets the fund demand effectively for the rapid development of economic and society, makes up for the shortcoming that local government lacks of financial resources, and promotes the process of China’s urbanization and industrialization. At the same time, investment and financing platform has the potential debt risk、fiscal risk and financial risk, which also cause widespread concern.According to the debt risk of the local government investment and financing platform, the paper analyzes its developing situation, proposes the key factors that caused debt risk: irregular operation, excessive investment and financing which is the form of financial opportunism; Then taking the Liuwu New District Urban Infrastructures Investment Company (UIIC) of Lhasa for example, the paper analyzes its operation status and problems, and builds a debt risk assessment model to estimates the timing and strength of debt risk for Liuwu New District UIIC; Finally, the paper gives advice on debt risk prevention from the government, financial institutions, and Liuwu New District UIIC, while push the operation of company towards marketization, corporatization, diversification and liabilities rationalization.