Circular on Approval of Short-term Foreign Debt Quotas for Foreign-invested Banks in China in 2005

2005/03/15

关于2005年境内外资银行短期外债指标核定工作的通知

Issued: January 26, 2005

Effective: April 1, 2005

Issuing Authority: SAFE

Main Contents: The circular states the principle behind the examination and approval of short-term foreign debt quotas for foreign-invested banks in 2005, and details how such examination and approval shall be carried out.

When approving short-term foreign debt quotas, SAFE will work on the principle of meeting foreign-invested banks' normal business needs while effectively controlling their short-term foreign debt scale. In 2004, SAFE's local counterparts examined short-term foreign debt quotas for each local foreign-invested bank before applying for SAFE's approval. SAFE will adopt this approach in 2005 and in the future.

Subject to the requirements of the circular, the principal reporting banks of foreign-invested banks may apply to SAFE's local counterparts for short-term foreign debt quotas and allocate the approved quotas among their member banks.

Foreign-invested banks shall apply for short-term foreign debt quotas within ten working days after they receive notice from SAFE's local counterparts; otherwise, the adjusted quota from 2004 will be their quota in 2005.

According to the circular, foreign-invested banks shall not provide foreign currency guarantees to domestic enterprises for RMB loans.



	Article featured in Business Beijing, March 2005 Publication sponsored by Information Office of the Beijing Municipal Government, Beijing Municipal Bureau of Commerce, Development & Reform Commission of Beijing Municipality, China Council for the Promotion of International Trade (Beijing Sub-Council)