Xuan Changneng: Expansion of foreign debt facilitation pilot to support cross-border financing of emerging companies

Xuan Changneng: Expansion of foreign debt facilitation pilot to support cross-border financing of emerging companies
On March 22, the State Council Office of Antiques responded to the impact of the international epidemic and maintained the stability of the financial market.Xuan Changneng, deputy director of the State Administration of Foreign Exchange, said that the foreign debt facilitation pilot will be expanded to support cross-border financing of emerging companies.Expand the pilot scope of foreign debt facilitation to Shanghai, Hubei, Guangdong and Shenzhen, etc., and allow emerging enterprises that meet certain conditions to automatically borrow foreign debt within the equivalent of USD 5 million.The following is inserted by Xuan Changneng, deputy director of the State Administration of Foreign Exchange.Since the outbreak of the New Coronary Pneumonia epidemic, the State Administration of Foreign Exchange has earnestly implemented the spirit of General Secretary Xi Jinping ‘s important speech, and in accordance with the deployment of the Central Leading Group for Response to the Epidemic Situation, under the guidance of the Financial Committee of the State Council, it has been coordinating the prevention and control of the epidemic and economic and social development.Fight the epidemic and actively support enterprises to resume production.Data show that despite the impact of the epidemic, this year, the foreign exchange market is expected to be generally stable.Here I briefly introduced two aspects of the foreign exchange support policy and the current high foreign exchange market.The foreign exchange bureau has always made epidemic prevention and control and supporting the resumption of production and production a top priority of its current work. It has listened to the demands of enterprises and other market participants, helped solve the problems encountered in foreign exchange, and increased its support for foreign exchange policies.One is to continue to make good use of the foreign exchange “green channel” policy, and actively support the prevention and control of epidemics and the resumption of production of enterprises.The second is to improve macro-prudential adjustment parameters and expand the space for enterprises to borrow foreign debt.On March 12, the People’s Bank of China and the Foreign Exchange Bureau jointly issued a document to increase the macro-prudential adjustment parameters from 1 to 1.25.After the policy adjustment, the balance of increased cross-border financing risk of the enterprise increased from 2 times to 2 times the original net assets.Five times, local institutions other than government financing platforms and real estate companies borrowed foreign debt space to further expand, which is conducive to small and medium-sized enterprises, private enterprises to better use various internal channels to raise funds.The third is to expand the pilot of foreign debt facilitation to support cross-border financing of emerging companies.Expand the pilot scope of foreign debt facilitation to Shanghai, Hubei, Guangdong and Shenzhen, etc., and allow emerging enterprises that meet certain conditions to automatically borrow foreign debt within the equivalent of USD 5 million.At the same time, the level of external debt facilitation in the Haidian Park of Zhongguancun Science City in Beijing will be further improved to better meet the needs of emerging companies in many places to use external debt funds and reduce their financial costs.The fourth is to actively use the cross-border financial blockchain technology platform to facilitate small and medium-sized enterprises to carry out trade financing.Editor Yue Caizhou