Guarding Of Our Local Government Financing Platform Risk

The local government financing platform produced in the reform of the tax system in1994, a series of rescue plan of Chinese government to deal with the issue of the2008financial crisis, resulting in the development of local government financing platform "blowout" type, aware of the huge debt of local government debt, the central government issued the state made19document specification Platform loan financing in2010, no new financing pattern of the recent emergence of new, to contain the platform too fast development, but local officials for the GDP oriented achievement needs and no fundamental change.besides local government financing platform for local infrastructure construction has made indelible contribution. At present in our country the local financial authority and powers of special seriously inconsistent situation, the local government financing platform has its unique importance, but the huge amounts of money loaning risk cannot be neglected. Through the analysis of the Platform Co internal operation mechanism, project fund loan process, found that the credit risk transfer mechanism, for the prevention of risk of the Platform Co, to prevent capital chain rupture and cause the financial turmoil has its significance. Current research on local government financing platform risk analysis is also less, most focus on theoretical analysis of the empirical model, is applied to analyze the less. Based on the Credit Metrics model, Credit portfolio model, KMV model and Credit Risk+model four model application scope, conditions, that KMV model has practical significance in the study of estimating the risk of financing platform of local government, so choose KMV model empirical analysis of local government.Guangdong Province of China belongs to the forefront of Chinese reform.The local government financing platform also earlier appeared in Guangdong Province, as a large province in China’s fiscal revenue,has the significance and important economy development mode. The innovation of this paper is to reconstruct the KMV model, analysis the risk of default which is suitable for the local government of the Platform Co, targeted to Guangdong Province as an example of Platform risk of default distance and default risk rate analysis, found the money than the relationship between financing and government rates, according to analysis of the risk factors. In the above analysis, put forward to reverse the government assessment system, improve the platform utilization of capital transparency, and on this basis to expand financing platform transformation, diversification of financing channels and platforms, the accumulation of risk diversification, the Platform company in accordance with the development of market type, the independent Platform Company debt and local government debt, to make it go on the path of sustainable development.