BEIJING, June 8 (Xinhua) – Shanghai authorities have unveiled measures to streamline foreign debt registration and administration procedures for qualified enterprises in the Lingang New Area of Shanghai Pilot Free Trade Zone (FTZ), according to an official circular released recently.
The circular, issued by the Shanghai Bureau of State Administration of Foreign Exchange (SAFE), aims to cancel the registration procedures for the signing of foreign debts of non-financial enterprises in the Lingang area and simplify the business procedures of cross-border financing for pilot enterprises in the area.
Through the measures, pilot enterprises can register their foreign debts only once within their quota, without applying the previous complex procedures such as signing contracts, withdrawals, changes, and cancellation of registration.
Within the registered amount, pilot enterprises can directly apply for, use, and repay foreign debt funds in the bank on their own.
The measures also propose that the enterprise can borrow foreign debts multiple times within the one-time external debt registration quota, and they can also borrow mortgages from different overseas entities.
It is noted that simplifying the foreign debt registration procedure not only helps enterprises to reduce transaction costs but also helps them to enhance the ability of foreign exchange management to serve the economic development in Shanghai.
(Edited by Jiang Feifan with Xinhua Silk Road, 346129473@qq.com)
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