(Effective Date 1987.08.27) Article 1. The present regulations are formulated to control the size of the country’s foreign debts and to enable a timely and accurate way Article 2. A foreign debt registration system is implemented for such purpose. The State Administration of Exchange Control (SAEC) is in charge of establishing and prefecting a system on collecting the statistics Article 3. Foreign debts herein mentioned refer to all debts which are guaranteed by repayment contracts to be repaid in foreign currency and (1) Loans from international financial institutions; (2) Foreign government loans; (3) Loans from foreign banks and financial organizations; (4) Buyer’s credits; (5) Loans from foreign enterprises; (6) Securities in foreign currency; (7) International financial leases; (8) Deferred payments; (9) Debts incurred under compensation trade arrangements and are to be repaid in the form of cash of a currency other than Renminbi, (10) Other forms of foreign debts. Foreign exchange funds obtained by borrowing units from foreign banks and Sino-foreign joint venture banks registered in the People’s Foreign exchange funds borrowed and transferred into the country by foreign banks and Sino-foreign joint venture banks registered Article 4. Registration of foreign debts is conducted on a case-by-case basis or a specified dates basis. The “Foreign Debts Registration Certificate” shall be formulated and issued by the SAEC in a unified way. Article 5. Sino-foreign equity or non-equity joint venture enterprises and wholly foreign-owned enterprises are required to register at and In the case of loans from international financial organizations, foreign governments, and borrowing by the Bank of China or other Apart from the borrowing units mentioned above in this article, other borrowing units are required to register at and obtain their Article 6. Borrowing units are required, while transferring their credits from other countries to the People’s Republic of China, to open a Banks are not allowed to open special forex accounts or debt servicing forex accounts for borrowing units, which have not obtained Article 7. Under the case-by-case registration method, a bank shall credit or debit the special forex account or the debt servicing forex account Under the method of registration at specified dates, a borrowing unit is required to submit a monthly report on the the signing of Borrowing units that have been approved to keep their credits abroad are required to the SAEC office which has approved their borrowing. Article 8. Once a borrowing unit has fully cleared its foreign debts as recorded in its foreign debt registration certificate, the bank concerned Article 9. SAEC offices are authorized to impose a fine, according to the seriousness of the case, on any unit that is found to have violated (1) Wilful non-registration or delay in registration of foreign debts; (2) Refusal to submit, conceal or submit in a fraudulent way or repeated delays without any special reason in the submission of copies (3) Foreign or altering the registration certificate, and (4) Opening or keeping a special forex account or a debt servicing forex account without prior approval. The party concerned is permitted to lodge an appeal against the penalty handed down with higher SAEC authorities. Article 10. The right to interpret these regulations is vested with the SAEC. Article 11. These regulations shall come into force from the day of promulgation. Borrowing units which still have not cleared their foreign debts are required to register at their local SAEC office within 30 days
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Source:MOFTEC |