A new interim regulation on the management of China's foreign debt will be effective from March 1.
Jointly issued by the State Development Planning Commission, the Ministry of Finance, and the State Administration of Foreign Exchange, the document provides guidelines relating to the use, repayment and supervision of foreign debt. It also provides definitions and classifications.
Officials say that the regulation will help to improve the legal framework, standardize the management of China's foreign loans and reduce foreign debt－related risks.
As a major form of overseas capital use, foreign loans have played an active role in promoting the development of China's economy.
The security of foreign debt is crucial to the sound functioning of the national economy and to the stability of the financial system.
(CCTV February 12, 2003)
