Foreign debt indexes within security limit
(peopledaily.com.cn)
Updated: 2004-04-02 14:37

Statistics released by State Administration of Foreign Exchange on April 1 show that China's foreign debt indexes were all within the international security limit at the end of 2003.

Figures show, at year-end of 2003, China's foreign debt ratio (ratio of outstanding foreign debt to foreign exchange of trade of goods and service) was 39.9 percent, liability ratio (ratio of outstanding foreign debt to Gross Domestic Product (GDP)) 13.74 percent and the ratio of short-term foreign debt to foreign exchange reserve approximately 19 percent.

Responsible person with the State Administration of Foreign Exchange said on April 1 China's outstanding foreign debt and newly-loaned foreign debt both had increased by a large margin the main reason for which was China's rapid economic growth and constantly optimized foreign investment environment. The interest difference between national and foreign currencies also helped the growth.

As learned, by the end of 2003, China's outstanding foreign debt was US$193.634 billion (that of Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan region excluded, the same for what below), US$ 22.278 billion or 13 percent up from the previous year.

Medium and long-term foreign debt was US$116.59 billion, 60.21 percent of the total and US$1.028 billion up from the end of 2002; outstanding short-term foreign debt stood at US$ 77.044 billion or 39.79 percent of the total outstanding with a year-on-year increase of US$ 21.25 billion.

China newly loaned US$101.544 billion of foreign debt (trade credits excluded) in 2003, paid back US$ 92.906 billion and paid US$5.221-billion interest as exchange rate difference and adjustment brought outstanding foreign debt up US$3.389 billion.

The personage said China now has adequate foreign exchange reserve and strong international solvency thus increasing foreign debt will not fundamentally affect the security of its foreign debt.

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