Which administrative body is involved in the registration? What is the purpose of debt registration? What liabilities have to be registered?
The name of the authority is SAFE - State Administration of Foreign Exchange.
The registration requirements have two aims.
- The first is to prevent Chinese corporate borrowers incurring excessive foreign indebtedness.
- The second is to ensure that the volume of liabilities falling due for repayment at any one time does not result in any excessive outflow of foreign exchange from China.
Only "international commercial loans" have to be registered. This term encompasses most borrowing by domestic organizations in foreign currencies.
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