What debts are foreign debts?

Our country has corresponding legal provisions on foreign debt, so what are foreign debts? In fact, there are many types of foreign debt. For example, loans from international financial organizations, loans from foreign governments, loans from foreign banks and financial institutions, etc. are all foreign debts of the country. The following is a detailed introduction to the types of foreign debt and other foreign debt-related knowledge.

1. The concept of foreign debt

According to the definitions of the International Monetary Fund and the World Bank, Foreign debt refers to debts that residents of a country have contractual repayment obligations to non-residents at any given time, including the repayment of principal and the payment of interest.

According to the definition of the State Administration of Foreign Exchange, foreign debt refers to the international debt owed by agencies, groups, enterprises, institutions, financial institutions or other institutions within China to outside China. Financial organizations, debts with contractual repayment obligations borne by foreign governments, financial institutions, enterprises or other institutions in foreign currencies,

2. Types of foreign debts

1. Loans from international financial organizations;

2. Loans from foreign governments;

3. Loans from foreign banks and financial institutions;

4. Buyer’s credit;

5. Loans to foreign enterprises;

6. Issuance of foreign currency bonds;

7. International financial leasing;

8. Deferred payment;

9. Debts repaid directly in cash in compensation trade;

10. Other forms of external debts.

It can be seen from this that foreign equity investment such as foreign direct investment and stock investment do not belong to foreign debt.

3. What is foreign debt management

Foreign debt management refers to the prediction, adjustment and control of the scale, composition, type, borrowers and amount of foreign debt borrowed by the foreign debt management department based on policies and regulations. When a country borrows foreign debt, its original intention is It is to use foreign capital to develop the domestic economy, but if it is not managed well and cannot ensure the repayment of principal and interest and the pursuit of optimal benefits, it will inevitably fall into a debt crisis in the long run, which in turn will put a heavy burden on the country's economic development.