1998.09.26
STATE ADMINISTRATION OF FOREIGN EXCHANGE CONTROL
THE CIRCULAR ON THE REPAYMENTS OF DOMESTIC FOREIGN EXCHANGE OVERDUE
LOANS
(YINFA [1998] No. 468)
Recently, the People's Bank of China and State Administration of Foreign
Exchange (SAFE) have jointly issued the document, which set the
requirements on the repayments of domestic foreign exchange overdue
loans. In order for the document to be complied with, the relevant
policies are clarified as follows:
I. Under the following circumstances and with the approval of SAFE, the
foreign exchange can be purchased to repay the domestic foreign exchange
overdue loans:
1/ for the overdue loans which have been the bad loans of the involved
banks: if the law court or the arbitrator decided that the borrower
must repay the loans to the bank, the borrower can purchase the foreign
exchange to make the repayment with the RMB derived from the selling
off the property after having the approval of SAFE, which has checked
the lending contract and the verdict.
2/ for the enterprises whose performance and financial status
have improved significantly: if the enterprise has the repayment
capability, it can apply to SAFE for the purchasing of foreign
exchange for the repayment of the domestic foreign exchange overdue
loan by presenting the documents such as the lending contract, the
balance sheets and the loss and profit statements in the recent three
years and the source certificate of the RMB; the lending bank must
present the bank's CEO-signed documents such as the evidence of the
enterprise's performance and the source certificate of the RMB for
the purchase of foreign exchange to the SAFE for the approval;
after checking the above-mentioned documents, the SAFE can approve of
the enterprise's purchasing the foreign exchange to repay the overdue
loans.
3/ for the commercial banks which have implemented the overall credit
management for the borrowers and the principal banks which have made the
necessary credit restructuring with the credit limit: the bank can apply
to the SAFE for the approval of purchasing foreign exchange for the
repayment of the overdue loan; the relevant principal bank must present
the measures for the credit management in the bank, the credit extending
to the borrower, and the source certificate of the RMB for purchasing
the foreign exchange to the SAFE; the borrower must present the lending
contract, the balance sheet and loss and profit statement of the nearest
year and the source certificate of the RMB to the SAFE; after checking
the above-mentioned documents, the SAFE can authorize the enterprise to
purchase the foreign exchange to repay the overdue loan.
II. Any purchase of the foreign exchange with the value[1] [2] 下一页
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