Local Debt Launch:Institutional Preparation and Effective Supervision

After debated for several years,the matter,whether local governments issue debt,becomes once the focus people pay attention to.Beginning with the evaluation of institutional design,which the Ministry of Finance,on behalf of local governments,issued 200 billions Chinese Yen local debt in 2009,this paper introduces the experiences of America and Japan which have more mature supervision systems of local debt.On this basis,it systematically expatiates the technical and institutional preparation needed by local governments of our country to issue debt directly,and constructs the risk-prevention institution of local debt operation from three levels of legal surveillance, administrative monitor and market supervision.At last,it brings forward gradualness open mode of local debt on the basis of the situation of our country.