Foreign debt refers to a country's debt to foreign countries. According to the definition of the International Monetary Fund and the World Bank, foreign debt is "including all liabilities that are obligated to repay non-local residents in foreign currency or local currency".
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 Information China's regulations on foreign debt management mainly include:
(1) Bank of China, China International Trust and Investment Corporation and financial institutions approved by the State Administration of Foreign Exchange to operate overseas foreign currency loans may borrow funds or issue bonds. Other enterprises and companies that borrow money from abroad must report to the competent department or the people's governments of provinces, autonomous regions and municipalities directly under the Central Government for approval. Government agencies and institutions cannot borrow money directly from outside.
(2) Foreign loans borrowed and repaid by financial institutions shall be carried out within the scope of the credit investment plan approved by the People's Bank of China.
(3) The short-term overseas loans (commercial loans within one year) of coastal provinces, autonomous regions and municipalities directly under the Central Government shall be fully managed. Within the approved loan amount, you don't need to borrow and repay it yourself. You can borrow it as needed after repayment, as long as it doesn't exceed the approved amount. You can borrow more and use more, the sooner the better.
(4) Foreign loans can only be guaranteed by China Bank, China International Trust and Investment Corporation and financial institutions approved by the State Administration of Foreign Exchange, and foreign guarantees of industrial and commercial enterprises must be examined and approved one by one.
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