Suggestions on Improving Local Governments' Debt Management——A Trilateral Game Among the Central Government,Local Governments and Financial Institutions

In recent years,local governments' debts have posed problems and made considerable impacts on China's steady economic development for long-term,which can not be ignored.The central government,local governments and financial institutions have become three players in a trilateral game on local governments' debt problems.To minimize local governments' debt risks,this article suggests various measures establishing loan repayment mechanisms and risk warning systems,strengthening the regulation to financial institutions,reforming the existing performance evaluation mechanism,and modifying the existing Budget Law.