Research On Debt Risk Control Of Government Investment And Financing Platform

The emergence of local government investment and financing platforms has,to a certain extent,opened up financing channels for municipal projects,effectively alleviated the phenomenon of capital tension in urban infrastructure construction,promoted local economic and social development,and achieved phased results.The state has affirmed the regional government investment and financing platforms,increased the replication of investment and financing platform models in various regions,and thus attracted the attention of central supervision.In recent years,due to the tightening of financing policies,investment and financing activities guaranteed through government credit have been greatly restricted.This indicates that regional government investment and financing platforms have lost the most critical credit endorsement in terms of policies and laws,greatly weakening their investment and financing capabilities.In addition,relevant policies are not sound,and the management system is not standardized,resulting in many problems,resulting in significant risks for regional government investment and financing platforms.Therefore,creating a complete risk prevention system and ensuring the orderly operation of regional government investment and financing platforms plays a significant role in China’s long-term and stable economic development and building a friendly society.This article mainly takes the urban investment company in Area A as an example to study its debt risk issues.Firstly,this article elaborates on government investment and financing platforms,debt financing theory,and risk management theory,laying a theoretical foundation for this study.Then,starting from the actual situation of Zone A urban investment companies,this paper sorts out the company’s current debt profile from aspects such as debt scale and debt composition,and discusses the problems existing in the debt risk control process of Zone A urban investment companies,mainly including the following three aspects: First,the financing model is relatively single;The second is that the debt risk management system is not perfect;Third,insufficient supervision of debt risk.Thirdly,starting from the national level,the local government level,and the level of the A Zone Urban Investment Company itself,this article constructs an evaluation system for the debt risk of the A Zone Urban Investment Company.The evaluation results show that the final evaluation result of the A Zone Urban Investment Company’s debt risk evaluation is 39.45 points.Although the risk level is relatively small,in order to ensure the stable operation of the A Zone Urban Investment Company,it is necessary to control the risk factors accordingly.Finally,based on the analysis of the external and internal factors of the company,specific countermeasures and suggestions for controlling the debt risk of local government investment and financing platforms are proposed from three aspects: the national level,the local government level,and the internal level of the company.It is hoped that this study can provide relevant reference for the debt risk control of City A Investment Company,as well as other similar studies.