Research On TY Company Debt Risk Prevention Mechanism

The local government financing platform is a wholly state-owned company established by local governments at all levels with investment and financing as the main operating purpose.Before the implementation of the new budget law in 2015,our country stipulated that local governments must not borrow,but the rapid expansion of urban construction requires huge funds.Local governments will raise construction funds by setting up local government financing platforms,and local government financing platforms will establish local governments.The main carrier of hidden debt,TY company is the local government financing platform established by the Y district government in this case.The article through the domestic and foreign relevant "local government financing platform risk prevention and control" and provincial,municipal and district financing platform company debt relief related document requirements,with financing theory,financial risk management theory,public product theory,fiscal decentralization theory,entrusted agency Theory,project differentiation theory as the basis,taking TY Company as the research object.The first is to explain the current status of TY company in terms of organizational structure and operation model,and to compare with other financing platforms in Zhuzhou City.The second is to conduct a systematic debt risk assessment from the debt,asset,and business operations.The third is Analyzed the causes of debt risk from five aspects: operating environment,income source,profitability,market competitiveness,and capital expenditure.Face the problem,innovate ideas,clarify direction,improve measures,draw inspiration from the risk prevention of local government financing platforms.Such as the introduction of reserve policy tools,separation from government financing functions,expansion of financing channels,and adjustment of business layout to propose debt risk prevention mechanisms,It is of great significance to the prevention of TY company debt risk and the prevention of systemic financial risks.