Trials to reform the registration and administration of foreign debt were recently carried out in the Lin-gang Special Area, according to a policy issued by the Shanghai branch of the State Administration of Foreign Exchange.

Qualified firms (pilot firms) in Lin-gang Special Area can deal with one-time foreign debt registration, and are no longer required to handle foreign debt signing registration on an individual basis.

The reform removes the registration procedures for non-financial enterprises to sign up for foreign debts one by one, and dramatically simplifies the procedures for pilot firms to handle cross-border financing, saving time, manpower, and money.

Pilot firms no longer need to handle signing, withdrawal, change and cancellation registration separately. Firms can directly lend, use and repay foreign debt funds in banks within the registered amount without traveling back and forth between State Administration of Foreign Exchange (SAFE) offices. Enterprises can lend foreign debts multiple times within the one-time foreign debt registration quota and recycle the foreign debt funds.

In addition, within the one-time foreign debt registration quota, pilot firms can borrow money from different overseas entities.