A new interim regulation will be effective March 1 for the management of China's foreign debt.
Jointly issued by the State Development Planning Commission (SDPC), the Ministry of Finance, and the State Administration of Foreign Exchange, the document provides guidelines relating to the use, repayment and supervision of foreign debt. It also provides definitions and classifications.
As a major form of foreign capital utilization, foreign loans have played an active role in spurring the development of China's economy. The security of foreign debt is crucial to the sound functioning of the national economy and to the stability of the financial system.
An official with the SDPC said the regulation will help to improve the relevant legal framework, standardize the management of the country's foreign loans and reduce foreign debt-related risks.
(People's Daily January 15, 2003)
