Provisional Regulations for Statistics and Supervision of ExternalDebt (Approved by the State Council on June 17, 1987 Promulgated by theState Administration of Exchange Control on August 27, 1987) Whole ticle 1 These Provisional regulations are formulated to enable up- to-dateinformation on the country's external debt to be collected exactly andcompletely so as to control the size of external borrowing effectively,raise the efficacy of using foreign funds and promote national ticle 2 The country pursues the policy of managing external debt byregistration. The State Administration of Exchange Control (SAEC) is incharge of establishing and perfecting the system of statistics on andsupervision over the external debt of the country and publishing figureson the external ticle 3 External debt herein mentioned refers to all the debts which areguaranteed by repayment contracts in foreign currency and are borrowedfrom international financial institutions, foreign governments, financialinstitutions, enterprises or other institutions located outside thePeople's Republic of China by State enterprises, government establishment,financial institutions or other institutions (borrowing units) in thePeople's Republic of China. It includes the following: A. International financial institution loans. B. Foreign government loans. C. Foreign bank and financial institution loans. D. Buyer's credits. E. Foreign enterprise loans. F. Securities issued in foreign currency. G. International financial leases. H. Deferred payments. I. Debts repaid directly in foreign cash in compensation trade. J. External debt in other forms. Funds borrowed in foreign currency by borrowing units from banks withforeign capital and Chinese and foreign joint banks which are registeredin China are regarded as external debt. Funds borrowed in foreign currency from abroad by banks with foreigncapital and Chinese and foreign joint banks which are registered in Chinaare not regarded as external ticle 4 The registration of external debt is divided into two forms:case-by-case registration and periodic registration. The "registration certificate for external debt" shall be formulated,signed and issued by ticle 5 Chinese and foreign joint ventures, Chinese and foreign cooperativeenterprises and enterprises with foreign capital are required, whileborrowing, to register at and obtain a case-by-case registrationcertificate for external debt from a branch office of SAEC by submitting aduplicate of the loan agreement to the office within 15 days of the formalagreement's signature. In reference to international financial institution loans, foreigngovernment loans, external borrowing by the Bank of China or otherauthorized banks and financial institutions, the borrowing units concernedare required to register at and obtain a periodic registration certificatefor external debt from a branch office of SAEC. Indirect lending is notincluded in the registration mentioned above in this paragraph. Apart from the borrowing units mentioned above in this article, otherborrowing units are required to register at and obtain a case-by-caseregistration certificate for external debt from a branch office of SAEC bysubmitting an approval certificate for external borrowing and a duplicateof the loan agreement to the office within 15 days after the formalagreement is ticle 6 Borrowing units are required, while transferring their external loanfrom other countries to China, to open special foreign cash accounts forexternal debts with the Bank of China or other banks authorized by SAEC(banks) against the registration certificate for external debt. Borrowingunits with approval to keep their external loan abroad and others whoseloan does not have to be transferred into China are required to openspecial foreign cash accounts for external debt to cover repayment andservicing, presenting their registration for external debt. Banks are not permitted to open special foreign cash accounts forexternal debt or special foreign cash accounts for external debt repaymentand servicing and to remit principal and interest abroad for borrowingunits that do not obey the registration certificate ticle 7 When borrowing units making a case-by-case registration repay andservice their external debts, banks should, upon presentation of both theregistration certificate for external debt and the approval certificatefrom concerned offices of SAEC provided by the borrowing units, conductreceipt and payment operations through the special foreign cash accountfor external debt or the special foreign cash account for external debtrepayment and service. The borrowing units are required to fill in, inaccordance with certificates of receipt and payment from banks, a feedbackform on external debt changes with items of receipt and payment and submita duplicate of the form to the office of SAEC which signed and issued theregistration certificate for external debt. The borrowing units making periodic registration are required tosubmit monthly materials concerning signatures, withdrawal usage andrepayment and service of external debts to the SAEC offices which signedand issued the registration certificate for external debt. Borrowing units with approval to keep their loans abroad are requiredto submit periodically the materials covering changes in their deposits tothe concerned office of SAEC that signed the ticle 8 Once borrowing units fully clear their external debts as recorded inthe registration certificate for external debt, banks should cancel thespecial foreign cash accounts for external debt or the special foreigncash accounts for external debt repayment and service of such borrowingunits. The units, in turn, are required to submit the registrationcertificate for external debt for cancellation to the local SAEC branchoffice within 15 ticle 9 The SAEC branch offices are empowered to fine, according to thecircumstances, any unit that violates these regulations in any of thefollowing ways, by an amount not exceeding 3 per cent of the external debtconcerned. A. Purposely not registering or delaying registration for externaldebt. B. Refusing to submit, concealing, fraudulently submitting or,without special cause, repeatedly delaying submitting the feedback form onexternal debt changes to SAEC. C. Forging or altering the registration certificate for externaldebt. D. Opening or keeping special foreign cash accounts for external debtor special foreign cash accounts for external debt repayment and servicewithout approval. The body concerned is permitted to lodge an appeal against such anadjudication with the higher authorities of ticle 10 These regulations shall be interpreted by ticle 11 These regulations shall enter into force on the date of rrowing units with unclear external debts are required to, registerat local SAEC branch offices within 30 days of the promulgation of theseregulations.