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Transformation of local government financing vehicles

From:社科报2021-9-28 19:44

Su Qin and Xiong Yi wrote in the 7th issue of Jiangxi Social Sciences in 2021 that the total amount of local government debt in China continues to grow due to a large amount of new financing from local government financing vehicles (LGFV). How to continue to guarantee debt safety of local financing platforms has become a concern of local governments and financial regulators, and whether LGFV can realize market-oriented transformation under the pressure of debt is a key to guarantee debt safety. There will be repayment pressure and even safety risks in case of lack of support from local governments in the process of transformation, while the transformation of LGFV is progressing slowly and there is a large amount of outstanding LGFV debt at present.