Research About The Debts Of Chinese Local Government

The problem of local government debt attracts today’s popular attention. How to resolve the local debt problems properly and solve the financing difficulties of the local government,the theory and history provide a suitable solution-issuing local government bonds.In the history, China have the precedent of issuing local government bonds in order to finance for the government. Because of bad issues appear during the bond issuance process,"Budget Law" prohibit the issuance of local government bonds. A lot of local government use "local financing platform loans" to finance for the government instead of local debt. However, in recent years, due to the lack of restraint, some of the local financing platform loans can not be paid in time.These kind of fact threats the credibility of local governments and the stability of market economy seriously. Under this condition, we hope to learn from the successful issuance experience of the U.S. municipal bond to construct the structure of China’s local government bonds perfectly.The U.S. municipal bond market, after nearly200years of continuous development, has reached a stable development. In this long development process, the U.S. municipal bonds have experienced rapid development, large-scale breach of contract and a series of typical events. U.S. municipal bonds experienced all of this above and now has perfect system of rules, legal system and regulatory regime, as well as crisis management mode. It provides a very rich theoretical basis and practical framework for China’s development of local government bonds. Therefore, it’s necessary for us to summarize the experience and learn lessons. So we can provide a good system to the mode of development of China’s local government bonds.Besides, we need to consider the China’s national conditions and specific practical. Only in this way, can we provide a perfect proposal for our country.