State Administration of Foreign Exchange, Implementation of Reform of Foreign Exchange Control of Domestic Foreign Exchange Loans Circular

Issued: December 6 2002
Effective: January 1 2003
Applicability: The self-operational foreign exchange loans provided by a Chinese-funded financial institution to a domestic institution of a non-financial nature, excluding loans converted from foreign debts (Item Two).

Main contents: The State Administration of Foreign Exchange (SAFE) shall implement the reform of foreign exchange control of domestic foreign exchange loans nationwide. Instead of having the debtors register each foreign exchange loan borrowing with SAFE or its administrations, under the reform the creditors (i.e. wholly Chinese-owned financial institutions that grant domestic foreign exchange loans) shall centrally register foreign exchange loans and report the same to the foreign exchange administrations. Such wholly Chinese-owned financial institutions may, on their own, open accounts designated for domestic foreign exchange loans for the enterprise and verify the truthfulness and compliance of the repayment of principals and interest (Item One).
Repealed legislation: Implementation of Trial Reform of Foreign Exchange Control of Domestic Foreign Exchange Loans Circular, Aug 2001