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The previous two years of the pilot

The previous two years of the pilot, the market knowledge of local debt is not uniform, some of the relatively strong financial resources of the provinces, local bond easily recognized by the market, but some Midwest local debt, can be described as deserted, nobody cares, but overall the made two years ago, bonds, either in the release mechanism, or in risk prevention, have accumulated some experience. In fact, local governments issue bonds as an institution in itself neither good nor bad, the key is how to control risks and to avoid local officials in obtaining debt issued after excluding the risks and consequences of abuse made claims moral hazard. Overseas experience shows that in fact the place where bonds are right to judge good governance to the market, which transparency, good governance and the financial power of local governments to issue bonds is clearly easier to get people of all ages, so to some extent bonds can be as a measure of local governance standards and a clear indicator of public credit. However, in the current mechanism for appointment of provincial officials and local people's congresses and supervision from the fact that the case, if you want to empower local hair creditor, you must design a strict risk control and oversight mechanisms, otherwise the consequences could be disastrous.http://pcacharyas.com/blog/groups/mbt-walking-shoes-im-afraid-the-end-is/
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