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For the purpose of further promoting the healthy development of trade financing, the State Administration of Foreign Exchange (SAFE) issued the Notice on the Examination and Ratification of Short-term External Debt Quotas of Financial Institutions in 2009 (hereinafter referred to as the "Notice"). The following is a transcript of an interview with SAFE officials on the management of the short-term external debt and the relevant contents of the Notice. Question: What is the division of responsibilities for the management of the external debt in China? Answer: According to the division of responsibilities to manage the external debt in China, the National Development and Reform Commission (NDRC) is responsible for management of medium- and long-term external debts (over one year). The SAFE is responsible for management of short-term external debts (one year or less). The SAFE is in charge of examination and ratification of short-term external debt quotas of financial institutions and of approval to sign contracts, withdraw registrations, open accounts, repay principal and interest, and settle relevant foreign exchange as well as approval of sales of all external debts (including medium- and long-term external debts). Question: What are the major changes in the short-term external debt management policies over the past two years? Answer: In order to achieve a general equilibrium in the balance of payments, restrict the scale of the short-term external debt, ensure the security of the national economy and finance, in March 2008 the SAFE made adjustments to the short-term external debt quotas of financial institutions. According to the adjustments, before March 31, 2008 Chinese-funded banks would reduce the short-term external debt quotas to 30 percent of the quotas ratified in 2006. Foreign-funded banks and non-bank financial institutions would adjust the short-term external debt quotas to 60 percent of the quotas ratified in 2006. Foreign-funded banks were encouraged to raise funds by purchasing foreign exchange in Renminbi and borrowing foreign exchange in China. The tightening up policy was continued in 2008. Once again, the SAFE reduced the short-term external debt quotas of Chinese and foreign-funded financial institutions by some 10 percent, based on the quota reductions in 2007. As far as policy implementation is concerned, based on the reduction scheme the financial institutions have achieved the aim of restraining the scale of short-term external debts. With regard to the results of the policy implementation, the excessive growth of the short-term external debt has been basically restrained; the irrational expansion of the foreign exchange credit scale of domestic financial institutions has been checked; the imbalance between supply and demand of domestic foreign exchange has been reduced; and the pressures due to the appreciation of the Renminbi have been diminished. While tightening the short-term external debt quotas, the SAFE is closely monitoring possible increased foreign exchange pressures on financial institutions due to implementation of the policy. Taking into account the support of the financial industry for the growth of the entire economy, the SAFE has excluded the accepted but unpaid letters of credit with a maturity of under 90 days and overseas agency payments with a maturity of under 90 days involved in trading activities so as to ensure sufficient financing support for trading activities. Question: What are the distinct aspects of this year's examination and ratification scheme as compared to the previous scheme? Answer: The 2009 examination and ratification scheme is formulated under the guidance of "maintaining growth, guarding against possible risks, and promoting a balance." When examining and ratifying short-term external debt quotas of national-level Chinese and foreign-funded banks with legal person status and quotas of various regions, we have adopted a methodology of "ensuring the controllability of the increase in the overall scale and taking into account the efficiency and fairness of individual institutions." In 2009, we examined and ratified short-term external debt quotas of financial institutions totaling US$32.9 billion, representing a 12 percent increase over that in 2008. In the 2009 examination and ratification scheme, special importance is attached to financing for trading activities. According to the scheme, Chinese and foreign-funded financial institutions entitled to the incremental quotas should make use of the total quota increment to support financing of imports and exports of domestic enterprises. The quota increment of various regions should be used preferentially to support financial institutions with a larger volume of trade settlement. In order to achieve maximum benefits to promote the development of the regional economy by using foreign exchange, the scheme transfers authority from the SAFE headquarters to its branches to examine and ratify quotas that have a close relation to the development of the local economy and quotas in need of timely adjustment. Question: We note that in the 2009 short-term external debt examination and ratification scheme special importance is attached to trade financing. How is the scheme being mapped out? Answer: In 2009 there will be even greater uncertainty in China's balance of payments. The economic downturn continues to spread in the developed countries, resulting in more uncertainty in future economic conditions. A huge number of multinationals are sliding into financial difficulties as demand on the world market is dropping rapidly. As a result, China will be facing greater challenges in its imports and exports. Cross-border fund flows will be more unpredictable. Taking this into account, we should attach greater importance to the prevention of possible risks based on a complete understanding of China's balance of payments. In response to the rising corporate operational risks and the lowered security of financial credit, we will adhere to the principle of "properly restraining the inflow of funds and prudently handling the prevention of risks," and when examining and ratifying the short-term external debt quotas we will adopt the methodology of "ensuring the controllability of an increase in the overall scale and taking into account the efficiency and fairness of individual institutions". We will impose tight restrictions on the inflow of external debts with high risk uses, a low threshold of outflow channels, and obvious short-term intentions. In 2009 the SAFE will respond actively to the central government's macroeconomic policy of "maintaining economic growth, expanding domestic demand, and adjusting the industrial structure." We will keep a close eye on the changes in the scale of the external debt and the internal structure, with top priority given to risk prevention. We will make adjustments to the short-term external debt quotas of banks to highlight the intermediary functions of banks by encouraging banks to carry out financing business to facilitate trading activities and capital turnover of enterprises. These measures are expected to promote the healthy development of imports and exports and the entire economy. Questions: What policies has the SAFE promulgated with respect to trade financing? Answer: From the perspective of external debt management, the following policies aimed at facilitating financing of trading activities have been put into place: 1.) The incremental short-term external debt quotas shall be used entirely for trade financing. Chinese and foreign-funded financial institutions entitled to the incremental quotas in the 2009 scheme shall use the quotas entirely for import and export financing of domestic enterprises. The SAFE branches shall preferentially use the regional quota increment to serve banks with a larger volume of trading settlement, with the aim of ensuring that all incremental quotas are used for import and export financing of domestic enterprises. 2.) Trade financing with a maturity of under 90 days shall be excluded from the short-term external debt quotas of the banks. The SAFE shall continue to implement the 2008 policy whereby accepted but unpaid letters of credit with a maturity of under 90 days and overseas agency payments with a maturity of under 90 days are excluded from the quota management. This will allow banks to carry out trade financing with a maturity of under 90 days without using the short-term external debt quotas. 3.) The policy whereby a certain proportion of corporate trade financing may employ foreign exchange settlement will continue to be implemented. In parallel with the regulation in which the foreign exchange settlement of domestic foreign exchange loans is strictly prohibited, the SAFE will give a green light to foreign exchange settlement of trade financing that includes export bill purchases and forfeiting without recourse and factoring to facilitate the trade and relevant procedures will be simplified. In 2008 the SAFE increased the benchmark proportion of advances on sales and deferred payments from 10 percent to 25 percent. According to the new regulation, a registered amount of under US$30,000 for single advances on sales and deferred payments shall be excluded from the quota management. For advances on sales or deferred payments with an insufficient proportion or beyond the quotas, the financial institution shall apply for a manual confirmation from the SAFE. 2009-04-17/en/2009/0417/885.html
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The SAFE recently released China 's International Investment Position for year-end 2007. At the end of 2007, China 's external financial assets reached USD 2288.1 billion, up 39% over the end of 2006; external financial liabilities reached USD 1266.1 billion, a rise of 23% yoy; external net financial assets totaled USD 1022 billion, an increase of 67% yoy. In terms of external financial assets, direct investments abroad totaled USD 107.6 billion, portfolio investments USD 239.5 billion, other investments USD 406.1 billion, and reserves assets USD 1,534.9 billion, accounting for 5%, 10%, 18%, and 67% respectively. In terms of external financial liabilities, foreign direct investments totaled USD 742.4 billion, portfolio investments USD 142.6 billion, and other investments USD 381 billion, accounting for 59%, 11%, and 30% respectively. The International Investment Position (hereafter referred to as the IIP) is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of one country or region to other countries or regions of the world, and together with the balance of payments statements (BOP statements) constitutes the complete international account system of the country or region indicating the trade flows. The SAFE has adjusted the IIP for year-end 2006 according to the latest data. China 's International Investment Position Unit: USD 100 million Items End of 2006 End of 2007 Net Position 6114 10220 A. Assets 16442 22881 1.Direct Investments Abroad 906 1076 2. Portfolio Investment 2292 2395 2.1 Equity Securities 15 189 2.2 Debt Securities 2278 2206 3. Other Investments 2515 4061 3.1 Trade Credits 1161 1415 3.2 Loans 670 888 3.3 Currency and Deposits 474 503 3.4 Other Assets 210 1255 4. Reserves Assets 10729 15349 4.1 Monetary Gold 43 46 4.2 Special Drawing Rights 11 12 4.3 Reserves Position in the Fund 11 8 4.4 Foreign Exchange 10663 15282 B. Liabilities 10328 12661 1. Foreign Direct Investments 6125 7424 2. Portfolio Investment 1207 1426 2.1 Equity Securities 1065 1250 2.2 Debt Securities 142 176 3. Other Investments 2996 3810 3.1 Trade Credits 1040 1323 3.2 Loans 985 1033 3.3 Currency and Deposits 589 981 3.4 Other Liabilities 382 473 Notes: 1. This IIP employs rounded-off numbers. 2. Net position refers to assets minus liabilities, + means net assets, and -means net liabilities. 3. Since 2006, the IIP has employed the data on stocks of foreign direct investments generated from the annual joint survey of six departments, such as the Ministry of Commerce and the Ministry of Finance, as the source of the data on foreign direct investment. Compilation Principles and Indexes for the IIP I. Compilation Principles for the IIP In accordance with the standards of the Balance of Payment Manual (Fifth Edition) published by the International Monetary Fund (IMF), the IIP is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of one country or region to other countries or regions of the world. Changes in the IIP can be caused by changes in the transactions, prices, and exchange rates as well as by other adjustments during specific periods. The IIP remains consistent with the BOP statement with regard to the principles of valuation, measurement, and conversion, and together with the BOP statement constitutes a complete international account system of the country or region. Chinas IIP is a statistical statement which reflects at a specific point the stocks of the financial assets and liabilities of China (excluding in the following Hong Kong SAR, Macao SAR, and Taiwan Province ) to other countries or regions of the world. II. Major IIP Indexes According to the standards of the IMF, the items on the IIP are categorized according to assets and liabilities. The assets are divided into Chinas direct investments abroad, portfolio investments, other investments, and reserves assets, whereas the liabilities are divided into foreign direct investments, portfolio investments, and other investments. The net position refers to assets minus liabilities. The items are specifically defined as follows: 1. Direct investment refers to external investment in which an investor of one country operates an enterprise located in another country with the aim of acquiring effective control over the enterprise. It consists of direct investment abroad and foreign direct investment. Direct investment abroad includes the stocks of direct investment abroad conducted by Chinas non-financial sectors, the stocks of the capital funds and working capital appropriated by domestic banks to set up branches overseas, as well as the stocks of loans between parent companies and subsidiaries both in China and abroad and the stocks of other receivables and payables. Foreign direct investment includes the stocks of foreign direct investment absorbed by Chinas non-financial sectors, the stocks of direct investment overseas absorbed by the financial sectors (including foreign investment attracted by branches of foreign financial sectors and Chinese-funded financial sectors, and investments from the foreign party in joint financial sectors), as well as the stocks of loans between parent companies and subsidiaries both in China and abroad and the stocks of other receivables and payables. 2. Portfolio investment includes types of investment such as shares, long- and medium-term bonds, and money market instruments. Portfolio investment assets refer to holdings of negotiable securities, such as shares, bonds, money market instruments, and derivative financial instruments, which are held by Chinese residents but issued by non-resident enterprises. Portfolio investment liabilities refer to shares and bonds held by non-resident enterprises but issued by Chinese residents. 2.1 Equity securities mainly comprise securities in the form of stocks. 2.2 Debt securities include long-term and medium-term bonds, short-term (one year or less) bonds, and money-market instruments or transferable debt instruments such as short-term treasury notes, commercial papers, and large-sum short-term negotiable certificates of deposits. 3. Other investment refers to all financial assets and liabilities, including trade credits, loans, currency, and deposits, as well as other assets and liabilities, but excluding direct investments, portfolio investments, and reserves assets. Long term means the contract period of the relevant financial assets/liabilities is longer than one year, whereas short term means the contract period is one year or less. 3.1 Trade credit refers to direct business credit arising from the import and export of goods between China and other countries. Assets refer to the receivables of Chinas exporters and the advance payments by Chinas importers, whereas liabilities refer to the payables of Chinas importers and the advance receipts of Chinas exporters. 3.2 As to loans, assets refer to the external assets held by domestic institutions through providing loans to overseas institutions; liabilities refer to the loans borrowed by domestic institutions, such as loans from foreign governments, loans from international institutions, loans from foreign banks, and sellerscredits. 3.3 As to currency and deposits, assets refer to the funds deposited abroad and the foreign cash in stock held by China's financial institutions; liabilities refer to the overseas private deposits and short-term funds from foreign banks attracted by China's financial institutions, as well as other short-term funds such as loans from foreign exporters and individuals. 3.4 Other assets/liabilities refer to investments other than trade credits, loans, currency, and deposits, for example, capital paid by non-currency international institutions and other receivables and payables. 4. Reserves assets refer to external assets that can be used at any time and that are effectively controlled by the PBOC, consisting of monetary gold, special drawing rights (SDRs), the reserves position in the Fund, and foreign exchange. 4.1 Monetary gold refers to the gold held by the PBOC as reserve. 4.2 SDR is a kind of ledger assets, which is allocated by the IMF according to the capital share of its members; it can be used to repay the debt to the IMF and make up for the deficit in the balance of payments between the governments of member countries. 4.3 Reserves positions in the Fund refer to assets that are held in the ordinary accounts of the IMF and that can be freely used. 4.4 Foreign exchange refers to current assets and liabilities that are retained by the PBOC and that can be used as a means of international compensation. 2008-06-20/en/2008/0620/869.html
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The State Administration of Foreign Exchange (SAFE) recently issued the Notice on Examination and Ratification of Short-term External Debt Quotas of Financial Institutions in 2009 (hereinafter referred to as the "Notice"), which discloses the examination and ratification scheme for short-term external debt quotas of financial institutions in 2009. The Notice also clarifies the scale, specifications, and purposes of short-term external debts. In 2009 the management of short-term external debts is implemented under the guidance of "maintaining growth, guarding against possible risks, and promoting balance," using the methodology of "ensuring the controllability of an increase in the overall scale and taking into account the efficiency and fairness of the individual institutions." The SAFE has adjusted the short-term external debt quotas of national-level Chinese and foreign-funded banks with legal person status and the quotas of various regions. The examined and ratified short-term external debt quotas of financial institutions total US$32.9 billion, representing a 12 percent increase over that in 2008. The Notice attaches special importance to the financing of trade activities. According to the scheme, the Chinese and foreign-funded financial institutions entitled to the incremental quotas should make use of the total quota increment to support the financing of imports and exports of domestic enterprises. The quota increment of the various regions shall be used preferentially to support financial institutions with a larger volume of trade settlement. These measures will help facilitate the guidance policy on short-term external debt management, as well as ensure the healthy and stable development of China's foreign trade. The Notice makes clear that the SAFE will transfer authority for examining and ratifying quotas of financial institutions that have a close relation to the development of the local economy and quotas in need of timely adjustment from the SAFE headquarters to its branches, with the purpose of further increasing efficiency in the use of short-term external debt quotas and bolstering regional economic development. 2009-04-17/en/2009/0417/884.html
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At the end of 2008, China's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province) reached USD 374.661 billion, an increase of USD 1.043 billion, or 0.28%, compared with that at the end of 2007. Specifically, the outstanding long- and medium-term external debt reached USD 163.876 billion, an increase of USD 10.342 billion, or 6.74%, compared with that at the end of 2007, accounting for 43.74% of the total outstanding external debt. The outstanding short-term external debt totaled USD 210.785 billion, a decrease of USD 9.299 billion, or 4.23%, compared with that at the end of 2007, accounting for 56.26% of the total outstanding external debt. Among the outstanding registered external debt of USD 260.561 billion, the outstanding sovereign debt borrowed by ministries under the State Council totaled USD 33.287 billion, accounting for 12.78%; the outstanding debt of Chinese-funded financial institutions was USD 82.810 billion, accounting for 31.78%; the outstanding debt of foreign-funded enterprises was USD 96.133 billion, accounting for 36.89%; the outstanding debt of foreign-funded financial institutions in China was USD 43.530 billion, accounting for 16.71%; the outstanding debt of Chinese-funded enterprises was USD 4.471 billion, accounting for 1.72%; and the outstanding debt of other institutions was USD 330 million, accounting for 0.12%. The amount of long- and medium-term external debt in 2008 was USD 36.307 billion, an increase of USD 291 million, or 0.81%, over that of the previous year. The principal repayment for long- and medium-term external debt was USD 23.291 billion, an increase of USD 3.024 billion, or 14.92%, over that in the previous year. The interest payment was USD 4.154 billion, a decrease of USD 804 million, or 16.22%, compared with that in the previous year. Initial calculations reveal that the debt service ratio in 2008 was 1.78%, the ratio of the outstanding external debt to foreign exchange income was 23.69%, the ratio of outstanding external debt to GDP was 8.65%, and the ratio of the short-term external debt to foreign exchange reserves was 10.83%. All of these indexes are within the safe range of international standards. 2009-04-24/en/2009/0424/887.html
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The SAFE recently released China 's Balance of Payments Statement for the first half of 2008. The statistics reveal that the current account and the capital and financial account posted a "twin surplus" and international reserves increased rapidly. In the first half of 2008, China 's surplus under the current account totaled USD 191.7 billion, an increase of 18% year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 132.5 billion, USD 38.3 billion, and USD 24.2 billion, respectively, whereas the deficit in services amounted to USD 3.3 billion. Meanwhile, China 's surplus under the capital and financial account totaled USD 71.9 billion, a drop of 20%. In particular, the net inflows of direct investments and portfolio investments amounted to USD 40.8 billion and USD 19.8 billion respectively, whereas the outflows of other investments reached USD 9.7 billion. Furthermore, China 's international reserves continued to grow. At the end of June, China registered a total of USD 1,808.8 billion in foreign exchange reserves, an increase of USD 280.6 billion over that at the end of 2007. The BOP Analysis Team of the SAFE released Chinas Balance of Payments Report for the First Half of 2008 in order to facilitate understanding of the data and analysis of China 's balance of payments among all social groups. The SAFE recently released China 's Balance of Payments Statement for the first half of 2008. The statistics reveal that the current account and the capital and financial account posted a "twin surplus" and international reserves increased rapidly. In the first half of 2008, China 's surplus under the current account totaled USD 191.7 billion, an increase of 18% year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 132.5 billion, USD 38.3 billion, and USD 24.2 billion, respectively, whereas the deficit in services amounted to USD 3.3 billion. Meanwhile, China 's surplus under the capital and financial account totaled USD 71.9 billion, a drop of 20%. In particular, the net inflows of direct investments and portfolio investments amounted to USD 40.8 billion and USD 19.8 billion respectively, whereas the outflows of other investments reached USD 9.7 billion. Furthermore, China 's international reserves continued to grow. At the end of June, China registered a total of USD 1,808.8 billion in foreign exchange reserves, an increase of USD 280.6 billion over that at the end of 2007. The BOP Analysis Team of the SAFE released Chinas Balance of Payments Report for the First Half of 2008 in order to facilitate understanding of the data and analysis of China 's balance of payments among all social groups. 2008-10-29/en/2008/1029/879.html
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At the end of March 2008, China 's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province ) reached USD 392.589 billion, an increase of USD 18.971 billion or 5.08 percent compared with that at the end of 2007. Specifically, the outstanding long- and medium-term external debt (with the remaining term) reached USD 155.864 billion, an increase of USD 2.33 billion or 1.52 percent compared with that at the end of 2007, accounting for 39.70 percent of the total outstanding external debt. The outstanding short-term external debt (with the remaining term) totaled USD 236.725 billion, an increase of USD 16.641 billion or 7.56 percent compared with that at the end of 2007, accounting for 60.30 percent of the total outstanding external debt. Among the outstanding registered external debt of USD 248.689 billion, the outstanding sovereign debt borrowed by ministries under the State Council totaled USD 34.820 billion, accounting for 14.00 percent; the outstanding debt of Chinese-funded financial institutions was USD 83.239 billion, accounting for 33.47 percent; the outstanding debt of foreign-funded enterprises was USD 78.970 billion, accounting for 31.76 percent; the outstanding debt of foreign-funded financial institutions in China was USD 46.679 billion, accounting for 18.77 percent; the outstanding debt of Chinese-funded enterprises was USD 4.654 billion, accounting for 1.87 percent; and the outstanding debt of other institutions was USD 327 million, accounting for 0.13 percent. From January to March 2008, long- and medium-term external borrowing came to USD 7.748 billion, an increase of USD 1.013 billion or 15.04 percent over that in the same period of the last year. The principal repayment was USD 4.595 billion, an increase of USD 488 million or 11.88 percent over that in the same period of the last year. The interest payment was USD 1.106 billion, an increase of USD 301 million or 37.39 percent over that in the same period of the last year. At the end of March 2008, the scale of the total external debt of China maintained a growing momentum. 2008-07-04/en/2008/0704/872.html
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At the end of September 2008, China 's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province ) reached USD 441.952 billion, up by 18.29 percent compared with that at the end of 2007. Specifically, the outstanding long- and medium-term external debt reached USD 161.909 billion, up by 5.45 percent compared with that at the end of 2007, accounting for 36.63 percent of the total outstanding external debt. The outstanding short-term external debt totaled USD 280.043 billion, up by 27.24 percent compared with that at the end of 2007, accounting for 63.37 percent of the total outstanding external debt. Of the outstanding registered external debt of USD 288.152 billion, the outstanding sovereign debt borrowed by ministries under the State Council totaled USD 34.550 billion, accounting for 11.99 percent; the outstanding debt of Chinese-funded financial institutions was USD 108.215 billion, accounting for 37.56 percent; the outstanding debt of foreign-funded enterprises was USD 93.214 billion, accounting for 32.35 percent; the outstanding debt of foreign-funded financial institutions in China was USD 47.294 billion, accounting for 16.41 percent; the outstanding debt of Chinese-funded enterprises was USD 4.502 billion, accounting for 1.56 percent; and the outstanding debt of other institutions was USD 377 million, accounting for 0.13 percent. From January to September 2008, long- and medium-term external borrowing amounted to USD 27.38 billion, an increase of USD 1.908 billion, or 7.49 percent, over that in the same period of the last year. The principal repayment was USD 13.784 billion, a decrease of USD 977 million, or 6.62 percent, over the previous year. The interest payment was USD 2.956 billion, an increase of USD 290 million, or 10.88 percent, over that in the previous year(End). 2008-12-26/en/2008/1226/881.html
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At the end of June 2008, China 's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province ) reached USD 427.432 billion, up by 14.40 percent compared with that at the end of 2007. Specifically, the outstanding long- and medium-term external debt reached USD 162.067 billion, up by 5.56 percent compared with that at the end of 2007, accounting for 37.92 percent of the total outstanding external debt. The outstanding short-term external debt totaled USD 265.365 billion, up by 20.57 percent compared with that at the end of 2007, accounting for 62.08 percent of the total outstanding external debt. Among the outstanding registered external debt of USD 278.832 billion, the outstanding sovereign debt borrowed by ministries under the State Council totaled USD 35.048 billion, accounting for 12.57 percent; the outstanding debt of Chinese-funded financial institutions was USD 105.410 billion, accounting for 37.80 percent; the outstanding debt of foreign-funded enterprises was USD 86.541 billion, accounting for 31.04 percent; the outstanding debt of foreign-funded financial institutions in China was USD 46.881 billion, accounting for 16.81 percent; the outstanding debt of Chinese-funded enterprises was USD 4.620 billion, accounting for 1.66 percent; and the outstanding debt of other institutions was USD 332 million, accounting for 0.12 percent. From January to June 2008, long- and medium-term external borrowing came to USD 19.505 billion, an increase of USD 4.136 billion or 26.91 percent over that during the same period of the last year. The principal repayment was USD 8.773 billion, a decrease of USD 2.232 billion or 20.28 percent over that during the same period of the last year. The interest payment for long- and medium-term debt was USD 1.918 billion, an increase of USD 178 million or 10.23 percent over that during the same period of the last year. 2008-10-07/en/2008/1007/877.html
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October 31, 2007 -- The SAFE recently released China's Balance of Payments Statement for the first half of 2007. Statistics reveal that the current account and the capital and financial account posted a "twin surplus",and international reserves increased rapidly. In the first half of 2007, China's surplus under the current account totaled USD 162.9 billion. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 135.7 billion, USD 12.9 billion, and USD 17.4 billion, respectively, while the deficit in services amounted to USD 3.1 billion. Meanwhile, China's surplus under the capital and financial account totaled USD 90.2 billion. In particular, net inflows of the capital account, direct investments, and other investments reached USD 1.5 billion, USD 50.9 billion, and USD 42.6 billion respectively, while the outflows of portfolio investment totaled USD 4.8 billion. Furthermore, China's international reserves continued to grow. At the end of June, China registered a total of USD 1,332.6 billion in foreign exchange reserves, an increase of USD 266.3 billion over the end of 2006. In addition, the BOP Analysis Team of the SAFE released China's Balance of Payments Report for the First Half of 2007 in order to facilitate understanding of the data and analysis of China's balance of payments among all social groups. Chinas Balance of Payments * (First Half of 2007) (Unit: 1,000 US dollars) Item Line Balance Credit Debit I. Current Account 1 162,857,962 656,184,959 493,326,998 A. Goods and Services 2 132,549,018 603,062,616 470,513,597 a. Goods 3 135,690,881 547,174,215 411,483,334 b. Services 4 -3,141,862 55,888,401 59,030,263 1.Transportation 5 -4,843,018 13,554,628 18,397,646 2.Travel 6 3,341,977 17,935,000 14,593,023 3.Communication Services 7 125,237 592,293 467,057 4.Construction Services 8 619,002 1,878,559 1,259,557 5.Insurance Services 9 -4,336,191 482,745 4,818,936 6.Financial Services 10 -218,799 76,406 295,205 7.Computer and Information Services 11 971,409 1,948,049 976,640 8.Royalties and Licensing Fees 12 -3,833,739 114,902 3,948,641 9.Consulting Services 13 -196,482 4,941,825 5,138,307 10.Advertising and Public Opinion Polling 14 295,104 875,640 580,536 11.Audio-visual and Related Services 15 31,048 92,700 61,652 12.Other Business Services 16 4,903,403 13,035,673 8,132,270 13. Government Services, n.i.e. 17 -814 359,980 360,794 B. Income 18 12,904,373 34,083,181 21,178,808 1.Compensation of Employees 19 1,716,895 2,972,999 1,256,105 2.Investment Income 20 11,187,478 31,110,182 19,922,704 C. Current Transfers 21 17,404,571 19,039,163 1,634,592 1.General Government 22 -83,230 21,191 104,421 2.Other Sectors 23 17,487,801 19,017,972 1,530,171 II. Capital and Financial Account 24 90,164,499 446,812,821 356,648,322 A. Capital Account 25 1,464,582 1,563,893 99,311 B. Financial Account 26 88,699,916 445,248,928 356,549,011 1. Direct Investment 27 50,919,043 63,314,553 12,395,510 1.1 Abroad 28 -7,414,240 585,653 7,999,892 1.2 Domestic 29 58,333,282 62,728,900 4,395,618 2. Portfolio Investment 30 -4,825,693 17,686,641 22,512,334 2.1 Assets 31 -15,077,372 7,434,962 22,512,334 2.1.1 Equity Securities 32 -5,034,000 927,000 5,961,000 2.1.2 Debt Securities 33 -10,043,372 6,507,962 16,551,334 2.1.2.1 Bonds and Notes 34 -8,175,372 6,507,962 14,683,334 2.1.2.2 Money Market Instruments 35 -1,868,000 0 1,868,000 2.2 Liabilities 36 10,251,678 10,251,678 0 2.2.1 Equity Securities 37 10,251,678 10,251,678 0 2.2.2 Debt Securities 38 0 0 0 2.2.2.1 Bonds and Notes 39 0 0 0 2.2.2.2 Money Market Instruments 40 0 0 0 3. Other Investment 41 42,606,567 364,247,734 321,641,167 3.1 Assets 42 17,149,666 31,767,204 14,617,538 3.1.1 Trade Credits 43 -5,915,000 0 5,915,000 Long-term 44 -414,050 0 414,050 Short-term 45 -5,500,950 0 5,500,950 3.1.2 Loans 46 12,235,115 14,539,086 2,303,972 Long-term 47 -1,041,000 0 1,041,000 Short-term 48 13,276,115 14,539,086 1,262,972 3.1.3 Currency and Deposits 49 9,227,109 13,212,830 3,985,722 3.1.4 Other Assets 50 1,602,443 4,015,287 2,412,844 Long-term 51 0 0 0 Short-term 52 1,602,443 4,015,287 2,412,844 3.2 Liabilities 53 25,456,901 332,480,530 307,023,629 3.2.1 Trade Credits 54 7,132,000 7,132,000 0 Long-term 55 499,240 499,240 0 Short-term 56 6,632,760 6,632,760 0 3.2.2 Loans 57 10,192,989 279,836,819 269,643,829 Long-term 58 2,381,266 10,091,536 7,710,271 Short-term 59 7,811,724 269,745,283 261,933,559 3.2.3 Currency and Deposits 60 8,247,446 44,741,749 36,494,304 3.2.4 Other Liabilities 61 -115,534 769,962 885,496 Long-term 62 278,404 309,958 31,554 Short-term 63 -393,938 460,004 853,942 III. Reserves Assets 64 -266,097,901 219,340 266,317,242 3.1 Monetary Gold 65 0 0 0 3.2 Special Drawing Rights 66 -36,242 0 36,242 3.3 Reserves Position in the Fund 67 219,340 219,340 0 3.4 Foreign Exchange 68 -266,281,000 0 266,281,000 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 13,075,441 13,075,441 0 * This BOP statement employs rounded-off numbers. 2007-10-31/en/2007/1031/860.html
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April 19, 2007 - At the end of 2006, China 's outstanding external debt reached USD 322.988 billion (excluding that of the Hong Kong SAR, Macao SAR, and Taiwan Province , the same below), an increase of USD 41.943 billion or 14.92% compared with that at the end of 2005. Specifically, the outstanding long- and medium-term debt (with the remaining term) stood at USD 139.360 billion, an increase of USD 14.458 billion or 11.58% compared with that at the end of 2005. The outstanding short-term debt (with the remaining term) was USD 183.628 billion, an increase of USD 27.485 billion or 17.60% compared with that at the end of 2005. The short-term debt accounted for 56.85% of the total. Among the USD 322.988 billion external debt, the outstanding registered external debt was USD 218.988 billion and the balance of trade credit was USD 104 billion. Among the outstanding registered external debt, the amount borrowed by ministries and commissions directly under the State Council was USD 34.354 billion, accounting for 15.69%; that of domestic-funded financial institutions was USD 70.363 billion, accounting for 32.13%; that of foreign-funded enterprises was USD 60.842 billion, accounting for 27.78%; that of foreign-funded financial institutions in China was USD 49.634 billion, accounting for 22.67%; that of Chinese-funded enterprises was USD 3.521 billion, accounting for 1.61%; and that of other institutions was USD 274 million, accounting for 0.12%. The amount of registered long- and medium-term external borrowing in 2006 was USD 26.033 billion, an increase of USD 1.364 billion or 5.53% over the previous year. The principal repayment was USD 17.899 billion, a decrease of USD 2.852 billion or 13.74% over the previous year. The interest payment under the long- and medium-term debt was USD 3.105 billion, an increase of USD 23 million or 0.75% compared with the previous year. Initial calculations reveal that our debt service ratio in 2006 was 2.09%, the ratio of outstanding external debts to foreign exchange income was 30.42%, the ratio of outstanding external debts to GDP was 12.30%, and the ratio of short-term external debts to foreign exchange reserves was 17.22%. All of these indexes are within the safety limits of international standards. 2007-04-19/en/2007/0419/836.html