Home>News Center>China
       
 

Measures to contain increase in foreign debt
By Feng Jie (China Daily)
Updated: 2005-10-22 06:14

China's foreign exchange regulator announced new measures on Friday to contain a rapid increase in foreign debt and ensure stable economic growth.

The State Administration of Foreign Exchange (SAFE) tightened rules governing foreign borrowing by local companies and foreign-invested firms, noting that a continued uptrend in foreign liabilities may threaten the nation's stable economic growth.

China borrowed US$148.3 billion in the first half of this year, up 77.7 per cent from a year earlier, it said earlier this month.

"An excessive inflow of foreign debt, particularly short-term debt, may pose a potential risk and have a negative impact on the stable and healthy growth of the economy," a SAFE spokesman said on Friday.

Starting in December, import payments of no less than US$200,000 that are delayed 180 days or longer after delivery will be treated as foreign debt. Such payments shall total no more than 10 per cent of the importer's total imports in the previous year, SAFE said.

The move plugs a regulatory loophole in the management of trade credit and will help provide more complete trade data for decision-makers, it said.

Trade credit accounted for 53 per cent of China's outstanding short-term liabilities at the end of June.

The spokesman did not elaborate on the causes of the rapid increases in trade credit. Earlier this year, the administration named it as one of the channels through which speculative funds that are betting on the revaluation of China's renminbi were entering the country.

China announced a long-anticipated reform of the renminbi's exchange rate, allowing the currency to strengthen by 2 per cent against the US dollar, but trading partners, who complain that the currency is undervalued to give Chinese exports an unfair competitive edge, are pressing for further action.

The administration said the new regulation is unlikely to disrupt importers' normal operations, stressing that the 10 per cent can basically meet their needs of trade credit.

SAFE also announced tighter rules on the conversion of capital and foreign debt by foreign-invested companies into the local currency, providing more strict procedures for conversions of US$200,000 or more.

The move followed measures in the past two years to tighten the supervision of forex sales to banks, as the authorities tried to harness the rapid increases in forex reserves, which were believed to be partly a result of speculative capital inflows.

Under China's current forex management regime, companies are required to sell a big portion of their forex to designated banks, most of which end up in the nation's forex reserve stockpile.

The administration also tightened rules on fund management of China-incorporated multinationals and the policy on overseas guarantees, which it also said will not harm businesses.

Analysts say the current level of foreign debt, or short-term debt, poses no serious threat to China's financial security, as its hefty foreign exchange reserves provide adequate resources to repay debts.

(China Daily 10/22/2005 page1)



Old building demolished in Shanghai
Plowing in the Tian'anmen Square
Shenzhou VI re-entry capsule opened in Beijing
  Today's Top News     Top China News
 

Measures to contain increase in foreign debt

 

   
 

New law to strengthen energy security

 

   
 

Military opens material procurement website

 

   
 

'Milestone' paper seeks wider heritage protection

 

   
 

President Hu to pay visits to DPRK, Vietnam

 

   
 

China offers nuclear assurance to Rumsfeld

 

   
  New law to strengthen energy security
   
  Measures to contain increase in foreign debt
   
  'Milestone' paper seeks wider heritage protection
   
  Women's hearts offer clues to lucrative markets
   
  New jobless figure coming next year
   
  Zone project aims to help arable land yield more
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  News Talk  
  It is time to prepare for Beijing - 2008  
Advertisement
         
主站蜘蛛池模板: 最新国产在线拍揄自揄视频| 精品国偷自产在线视频| 国内精品久久久久国产盗摄| 五月天亚洲色图| 欧美日韩亚洲国产无线码| 俺来也俺去啦久久综合网| 美女视频黄A视频全免费 | 亚洲a无码综合a国产av中文| 波多野结衣电影thepemo| 免费精品99久久国产综合精品| 黄页网址大全免费观看35| 国产精品久久久久久搜索| 91短视频在线高清hd| 性做久久久久久蜜桃花| 久久精品中文字幕第一页| 欧美日韩免费在线观看| 亚洲精品中文字幕无码蜜桃| 男女边吃奶边做边爱视频| 放荡的欲乱合集| 亚洲国产欧美日韩精品小说| 激情内射日本一区二区三区| 国产成人精品久久一区二区小说 | 丰满少妇作爱视频免费观看| 欧美色图亚洲激情| 四虎影视免费永久在线观看| 跳d放在里面逛超市的视频| 国产成人免费av片在线观看| 1024人成网站色| 国产精品亚洲一区二区无码| 99久久精品国产一区二区三区| 影音先锋人妻啪啪av资源网站| 亚洲欧美一区二区三区孕妇| 狠狠躁狠狠躁东京热无码专区| 国产AV人人夜夜澡人人爽麻豆| 国产91精品在线| 国产欧美另类精品久久久| 91精品国产一区二区三区左线 | 亚洲激情视频网站| 波多野结衣在线观看一区二区三区 | 欧美日韩国产手机在线观看视频| 免费a级片在线观看|