Research On Credit Risk Control In The Local Government Bonds Financing

As a form of national credit,the local government bonds take an importantrole in the ecnomy development of most countries. The Chinese governmenttook a plan of4trillion in order to deal with the financial crisis in year2009.Itcontented the issuing of local government bonds independently in Zhejiang,Guangdong, Shenzhen, Shanghai.However the tax system is divided now in ourcountry. In this system, the local government as the principal repayer takesmuch duty of the local economic construction.,but it has little financial power.The Audit Commission’s report said there was a considerable debit risk in manylocal governments.It will inevitably contents some degree of credit risk in suchcondicitions.This article just learn from the two developed foreigncountries,such as the United States and Japan to analysis the unquie causes inour country and then gives some specific constructive measures.