Inside foreign currency allowed for outside lending
http://www.dongguantoday.com/     08/02/2012 10:19

The Circular on Encouraging and Guiding the Healthy Development of Private Investment ("Circular") issued by State Administration of Foreign Exchange widens the channel for overseas lending, allowing domestic enterprise to use its foreign currency to lend overseas. The Circular took effect on July, 1, 2012.

According to the Circular, settlement and remission of foreign currency for overseas lending are exempt from verification. The domestic enterprise extending credit overseas with its foreign currency may directly go to the designated foreign exchange banks to handle a special overseas lending account to receive and pay the funds after the approval of loan quota by foreign exchange bureau and the registration in local foreign exchange bureau.

The Circular also makes it easier to remit the currency into China. The overseas direct investment funds where the differential part between the total investment amount and registered capital has been remitted by domestic enterprises may, upon the registration in local foreign exchange bureau, be directly remitted to China with no needs to handle the capital decrease or capital withdrawal registration formalities.

Experts say the Circular is a breakthrough to financing problem faced by Chinese enterprises in foreign market.

(This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at Kelly_xie@ktlf.com.cn or by phone on 13926185641.)

来源:News GD     Editor:谭晶