In 2021, China’s foreign debt will continue to grow steadily.
According to the data disclosed by the State Administration of Foreign Exchange on March 25, as of the end of 2021, my country’s full-scale (including domestic and foreign currency) foreign debt balance was 2,746.6 billion US dollars, compared with 2021. At the end of September, it increased by $50.1 billion, or 1.8%. The increase in external debt was mainly due to the continuous increase in holdings of domestic RMB bonds by foreign investors.
By the end of 2021, my country’s external debt debt ratio (the ratio of external debt to GDP) is 15.5%, and the debt ratio (the ratio of external debt to trade export revenue) is 77.3%, the debt service ratio (the ratio of external debt repayment and trade export revenue) was 5.9%, and the ratio of short-term external debt to foreign exchange reserves was 44.5%. The above indicators are all within the internationally recognized safety line (respectively 20%, 100%, 20% and 100%). The foreign exchange bureau emphasized that my country’s external debt risks are generally controllable.
“At present, the new crown pneumonia epidemic is still spreading around the world, and the external environment has become more complex, severe and uncertain. Stable recovery, the two-way opening of the financial market is steadily advancing, and it is expected that my country’s foreign debt will continue to maintain a stable operation.
From a structural point of view, at the end of 2021, the balance of foreign debt in local currency accounted for 45% of my country’s full-scale foreign debt, an increase of 1 percentage point from the end of September 2021. Said that the increase in the proportion of foreign debt in local currency will help reduce the currency mismatch risk of my country’s foreign debt. From the perspective of the maturity structure of external debt, at the end of 2021, the balance of medium and long-term external debt accounted for 47% of my country’s full-scale external debt, which was the same as that at the end of September 2021.
Wang Chunying said that the growth of foreign debt is mainly due to the continuous enhancement of my country’s economic strength and the continuous expansion of opening up. The reform of foreign debt management has strongly supported the development of the real economy. In 2021, the foreign exchange bureau will further expand the pilot program of foreign debt facilitation quota for high-tech enterprises and the pilot program of reform of foreign debt registration management, etc., and take multiple measures to provide enterprises with cross-border financing convenience, reduce financing costs, and help ease the financing of enterprises, especially small and medium-sized enterprises and private enterprises. problems, and effectively support the development of the real economy.