Local Government Debt Risk Management Study

Local government debt risk is the possibility of socio-economic losses caused by local government debt in a variety of uncertain factors.That is, Local governments in meeting their debt-servicing liability crisis may occur. What's worse, the damage of economy, social stability and development may occur too. Nowadays,the scale of local government debt expands rapidly and the risk of debtis very serious , which have influenced economic development and social stability.This paper gave a deep analysis of the causes of local debt and the impact of risk factors from the status of local government debt risk. And then, it pointed out establishing early warning mechanism to debt risk assessment is an effective means to achieve local government debt risk management. What's more, it introduced uncertain debt to measure and calculate the size of the total debt. And meanwhile , it used composite index of debt risk and government net to explore the risk assessment of local government debt,setting x for example. Finally, it gave some advice on preventing and controlling local government debt risk by improving the system,strengthening the management of debt risk and creating investment and financing mechanism for local governments.