The net foreign debt is equal to the total foreign debt of a country MINUS all the claims of residents to non-residents (that is, overseas assets). The total foreign debt and net foreign debt reflect the accumulated foreign debt over the years, that is, the stock of foreign debt; The balance of payments capital account reflects the annual increase and decrease of foreign debt, that is, the flow of foreign debt.
Extended data
Legal basis: Article 2 of Measures for the Administration of Foreign Debt Registration. The debtor shall borrow foreign debts in accordance with the relevant provisions of the state and register the foreign debts.
Article 6 of the Measures for the Administration of Foreign Debt Registration means that after the debtor borrows foreign debt in accordance with regulations, it shall register with the local foreign exchange bureau or submit information such as foreign debt signing, withdrawal, repayment, settlement and sale of foreign exchange in accordance with regulations. According to the types of debtors, different foreign debt registration methods are implemented.
When the foreign debt loan contract is changed, the debtor shall go to the foreign exchange bureau to register the change of foreign debt signing according to regulations.
When the balance of foreign debt is zero and the debtor no longer withdraws money, the debtor shall go through the cancellation procedures of foreign debt at the foreign exchange bureau as required.