Research On The Local Debt Risk And Its Prevention System In China

The local government manages the local affairs directly,seeking benefits for local people,serving the institutions of the society.In order to promote local economic development,to create more employment opportunities and improve people's living standards,The local government often borrow and issue local debt as a way to raise money,to complete the construction of infrastructure projects,provide the social and public services.However,under the limitation of relevant laws,local government has limited creditor's rights,thelocal government has much more things to do,the local government raise funds through multiple channels.Funding sources are mainly local financing platform,the central issuing local government debt,the superior financial balance of loan,trust company,credit cooperative,infrastructure bond investment of insurance funds,brokerage BT construction of debt financing and other loans,of which 50% from local financing platform.At present,the local debt risk control system and related laws and regulations lack of these financing channel regulation,the local debt risk accumulation.At present,our country's economy is facing downward pressure,a crucial period in the economy,countries are on the supply side mining dynamic economic growth,adjust the industrial structure,the corresponding local government has to undertake industrial transfer,and this will be a major test of local government financing.Therefore,how to solve this barrier and breakthrough of local government debt crisis,to ensure the success of the transformation of local economy,become a problem must be solved.In this paper,through the analysis of the current local government debt in China's rapid growth,unreasonable structure,lack of transparency of information and other practical problems,separately from the laws and regulations,information management,risk control and other aspects,causes many problems of formation,on the basis of drawing lessons from the successful experience of foreign local debt risk prevention recommendations,local governments in China to establish and improve the information disclosure mechanism of local government debt information disclosure,improve the transparency of information to improve the government debt.The credit rating report system,the credit rating of local government debt.Perfect management system,strengthen the coordination between debt regulatory authorities.Improve the crisis early warning mechanism,improving the crisis early-warning index system.Through the above method.The control of local government debt,to prevent the risk of local debt,to solve China's local government debt now and facing the future Financial crisis,enhance the credibility of the government,to ensure the financial security of local government,to ensure the sustainable development of China's economy,promoting social harmony and stability.