Chinanews, Beijing, Mar. 6 – China's foreign debt, especially short-term foreign debt, has increased too fast. By the end of last year, China’s foreign debt increased by 14% year on year, with short-term foreign debt growing by 16%, accounting for 57% of the total foreign debt, said the State Administration of Foreign Exchange last Friday.

 

Over the past few years, the current items and capital items in China’s international payment have remained surplus. China’s foreign exchange reserves have risen fast and the international payment has been unbalanced.

 

In order to prevent financial institutions borrow incurring too much short-term foreign debt and to effectively use the capital resources in China so as to promote the healthy development of Chinese financial market, the State Administration of Foreign Exchange has decided to make adjustment to related policies to regulate the borrow of foreign debt by domestic financial institutions this year.