Abstract
With the advancement of structural deleveraging and the strengthening of regulatory policies, local government financing platform is facing a certain financing dilemma. Starting from the financing dilemma of the financing platform, this paper analyzes the specific manifestations of the financing dilemma and the external and internal causes, and on this basis explores the direction of the financing platform to break the financing dilemma and carry out the market-oriented transformation. On the basis of matching local governments’ financial and administrative powers, the paper holds that we should promote the separation of government and enterprises, optimize the business model and debt structure of the financing platform, promote the formation of market competitiveness of the financing platform, and become the market subject of self-management and self-responsibility for profits and losses.
Highlights
IntroductionWith the advancement of the structural deleveraging process and the strengthening of regulatory policies, the financing situation of local government financing platforms (hereinafter referred to as “financing platforms”) are becoming more and more serious, and they are faced with certain financing difficulties, which are embodied in the increasing difficulty of financing and the superposition of existing debt due and repayment pressure
Starting from the financing dilemma of the financing platform, this paper analyzes the specific manifestations of the financing dilemma and the external and internal causes, and on this basis explores the direction of the financing platform to break the financing dilemma and carry out the market-oriented transformation
With the advancement of the structural deleveraging process and the strengthening of regulatory policies, the financing situation of local government financing platforms are becoming more and more serious, and they are faced with certain financing difficulties, which are embodied in the increasing difficulty of financing and the superposition of existing debt due and repayment pressure
Summary
With the advancement of the structural deleveraging process and the strengthening of regulatory policies, the financing situation of local government financing platforms (hereinafter referred to as “financing platforms”) are becoming more and more serious, and they are faced with certain financing difficulties, which are embodied in the increasing difficulty of financing and the superposition of existing debt due and repayment pressure. This article analyzes the financing dilemma, faced by local financing platforms and the causes of the dilemma, and on this basis, explores the transformation direction of local government financing platforms. The financing dilemma of the financing platform mainly includes: increased financing requirements, rising financing costs, and increased debt repayment pressure. The causes of these dilemmas are the changes in the external environment, and the internal reasons for the existence of the financing platform.
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