Research On Risk Management Of YF Company's Local Government Debt

In recent years,China's economy has entered a new normal stage,and the problem of local government debt has become increasingly prominent,which has attracted the attention of local governments.In October 2016,the Minister of finance once pointed out that the current debt of the central government of China is very healthy,and the data shows that the total debt accounts for 18% of GDP,far below the internationally recognized warning level.However,the situation of local debt problem is not optimistic.Its rapid expansion has affected the normal operation of local government finance.The increasingly prominent problem of local government debt has seriously affected the normal operation of enterprises with business contacts with the government,especially some engineering construction enterprises.Due to the particularity of the construction industry,the project lasts for a long time,and the project involves a large amount of money.Once there is a problem of arrears of project funds,it will seriously affect the normal operation of the enterprise,the development of the industry and the stability of the society.The serious problem of local government debt will lead to the inability to pay the project project funds of the enterprise,which will lead to the problem of default of project funds.When an enterprise is expanding its market share and market share,its strategic development and future development space will be seriously affected if the fund cannot be recovered in time.Construction enterprises and construction service enterprises often have advance funds in engineering projects.If the project project funds are in arrears again,the company may have a capital gap problem,and the bank loan requires the enterprise to have a certain amount of assets and good credit.In addition,the loan interest rate of private capital is relatively high,so in the short term,enterprises should rely on the timely collection of project funds in arrears and the timely return of funds,so as to ensure the normal operation and business development of the company.Firstly,this paper introduces the background of the current situation of local government debt,discusses the necessity of carrying out risk assessment for government debt based on the perspective of YF construction project management company,and summarizes and combs the existing literature about local government debt at home and abroad.The second chapter analyzes the historical reasons,development process and current situation of the debt problem,as well as helps to clarify the causes of the debt problem and formulate targeted solutions.In the third chapter,AHP is used to evaluate the risk of government debt,which provides an important reference for enterprises to make decisions.In the fourth chapter,from YF company's own point of view,debt risk prevention is carried out,including the prevention measures before the government's default project payment and the settlement of the default payment after the problem occurs.The fifth chapter analyzes the guarantee measures to carry out the work of clearing and collecting arrears efficiently,including the design of guarantee measures for personnel guarantee and organization system.