Provisional Regulations for Statistics and Supervision of ExternalDebt

Provisional Regulations for Statistics and Supervision of ExternalDebt (Approved by the State Council on June 17, 1987 Promulgated by theState Administration of Exchange Control on August 27, 1987) Whole Doc.

Article 1 These Provisional regulations are formulated to enable up- to-date information on the country's external debt to be collected exactly and completely so as to control the size of external borrowing effectively, raise the efficacy of using foreign funds and promote national economic growth.

Article 2 The country pursues the policy of managing external debt by registration. The State Administration of Exchange Control (SAEC) is in charge of establishing and perfecting the system of statistics on and supervision over the external debt of the country and publishing figures on the external debt.

Article 3 External debt herein mentioned refers to all the debts which are guaranteed by repayment contracts in foreign currency and are borrowed from international financial institutions, foreign governments, financial institutions, enterprises or other institutions located outside the People's Republic of China by State enterprises, government establishment, financial institutions or other institutions (borrowing units) in the People's Republic of China. It includes the following: A. International financial institution loans.

B. Foreign government loans.

C. Foreign bank and financial institution loans.

D. Buyer's credits.

E. Foreign enterprise loans.

F. Securities issued in foreign currency.

G. International financial leases.

H. Deferred payments.

I. Debts repaid directly in foreign cash in compensation trade.

J. External debt in other forms.

Funds borrowed in foreign currency by borrowing units from banks with foreign capital and Chinese and foreign joint banks which are registered in China are regarded as external debt.

Funds borrowed in foreign currency from abroad by banks with foreign capital and Chinese and foreign joint banks which are registered in China are not regarded as external debt.

Article 4 The registration of external debt is divided into two forms: case-by-case registration and periodic registration.

The "registration certificate for external debt" shall be formulated, signed and issued by SAEC.

Article 5 Chinese and foreign joint ventures, Chinese and foreign cooperative enterprises and enterprises with foreign capital are required, while borrowing, to register at and obtain a case-by-case registration certificate for external debt from a branch office of SAEC by submitting a duplicate of the loan agreement to the office within 15 days of the formal agreement's signature.

In reference to international financial institution loans, foreign government loans, external borrowing by the Bank of China or other authorized banks and financial institutions, the borrowing units concerned are required to register at and obtain a periodic registration certificate for external debt from a branch office of SAEC. Indirect lending is not included in the registration mentioned above in this paragraph.

Apart from the borrowing units mentioned above in this article, other borrowing units are required to register at and obtain a case-by-case registration certificate for external debt from a branch office of SAEC by submitting an approval certificate for external borrowing and a duplicate of the loan agreement to the office within 15 days after the formal agreement is signed.

Article 6 Borrowing units are required, while transferring their external loan from other countries to China, to open special foreign cash accounts for external debts with the Bank of China or other banks authorized by SAEC (banks) against the registration certificate for external debt. Borrowing units with approval to keep their external loan abroad and others whose loan does not have to be transferred into China are required to open special foreign cash accounts for external debt to cover repayment and servicing, presenting their registration for external debt.

Banks are not permitted to open special foreign cash accounts for external debt or special foreign cash accounts for external debt repayment and servicing and to remit principal and interest abroad for borrowing units that do not obey the registration certificate provisions.

Article 7 When borrowing units making a case-by-case registration repay and service their external debts, banks should, upon presentation of both the registration certificate for external debt and the approval certificate from concerned offices of SAEC provided by the borrowing units, conduct receipt and payment operations through the special foreign cash account for external debt or the special foreign cash account for external debt repayment and service. The borrowing units are required to fill in, in accordance with certificates of receipt and payment from banks, a feedback form on external debt changes with items of receipt and payment and submit a duplicate of the form to the office of SAEC which signed and issued the registration certificate for external debt.

The borrowing units making periodic registration are required to submit monthly materials concerning signatures, withdrawal usage and repayment and service of external debts to the SAEC offices which signed and issued the registration certificate for external debt.

Borrowing units with approval to keep their loans abroad are required to submit periodically the materials covering changes in their deposits to the concerned office of SAEC that signed the approval.

Article 8 Once borrowing units fully clear their external debts as recorded in the registration certificate for external debt, banks should cancel the special foreign cash accounts for external debt or the special foreign cash accounts for external debt repayment and service of such borrowing units. The units, in turn, are required to submit the registration certificate for external debt for cancellation to the local SAEC branch office within 15 days.

Article 9 The SAEC branch offices are empowered to fine, according to the circumstances, any unit that violates these regulations in any of the following ways, by an amount not exceeding 3 per cent of the external debt concerned.

A. Purposely not registering or delaying registration for external debt.

B. Refusing to submit, concealing, fraudulently submitting or, without special cause, repeatedly delaying submitting the feedback form on external debt changes to SAEC.

C. Forging or altering the registration certificate for external debt.

D. Opening or keeping special foreign cash accounts for external debt or special foreign cash accounts for external debt repayment and service without approval.

The body concerned is permitted to lodge an appeal against such an adjudication with the higher authorities of SAEC.

Article 10 These regulations shall be interpreted by SAEC.

Article 11 These regulations shall enter into force on the date of promulgation.

Borrowing units with unclear external debts are required to, register at local SAEC branch offices within 30 days of the promulgation of these regulations.


Banks are not permitted to open special foreign cash accounts for external debt or special foreign cash accounts for external debt repayment and servicing and to remit principal and interest abroad for borrowing units that do not obey the registration certificate provisions.

Article 7 When borrowing units making a case-by-case registration repay and service their external debts, banks should, upon presentation of both the registration certificate for external debt and the approval certificate from concerned offices of SAEC provided by the borrowing units, conduct receipt and payment operations through the special foreign cash account for external debt or the special foreign cash account for external debt repayment and service. The borrowing units are required to fill in, in accordance with certificates of receipt and payment from banks, a feedback form on external debt changes with items of receipt and payment and submit a duplicate of the form to the office of SAEC which signed and issued the registration certificate for external debt.

The borrowing units making periodic registration are required to submit monthly materials concerning signatures, withdrawal usage and repayment and service of external debts to the SAEC offices which signed and issued the registration certificate for external debt.

Borrowing units with approval to keep their loans abroad are required to submit periodically the materials covering changes in their deposits to the concerned office of SAEC that signed the approval.

Article 8 Once borrowing units fully clear their external debts as recorded in the registration certificate for external debt, banks should cancel the special foreign cash accounts for external debt or the special foreign cash accounts for external debt repayment and service of such borrowing units. The units, in turn, are required to submit the registration certificate for external debt for cancellation to the local SAEC branch office within 15 days.

Article 9 The SAEC branch offices are empowered to fine, according to the circumstances, any unit that violates these regulations in any of the following ways, by an amount not exceeding 3 per cent of the external debt concerned.

A. Purposely not registering or delaying registration for external debt.

B. Refusing to submit, concealing, fraudulently submitting or, without special cause, repeatedly delaying submitting the feedback form on external debt changes to SAEC.

C. Forging or altering the registration certificate for external debt.

D. Opening or keeping special foreign cash accounts for external debt or special foreign cash accounts for external debt repayment and service without approval.

The body concerned is permitted to lodge an appeal against such an adjudication with the higher authorities of SAEC.

Article 10 These regulations shall be interpreted by SAEC.

Article 11 These regulations shall enter into force on the date of promulgation.

Borrowing units with unclear external debts are required to, register at local SAEC branch offices within 30 days of the promulgation of these regulations.