2003-01-29

Added · Updated

Directions for the Declaration of Medium- and Long-Term External Debts by Private Enterprises

Private enterprises must declare medium- and long-term external debts by submitting the Top Form within 15 days of signing a contract and the Bottom Form by the 10th day of the month following the end of each quarter to report outstanding balances. The regulations define these debts as foreign currency obligations with maturities exceeding one year, including borrowings from foreign financial institutions, buyer's credit, loans from parent companies abroad, and corporate bonds issued abroad. Enterprises must indicate the assigned debt serial number on foreign exchange transaction declarations and separate creditors by category. Funds obtained under special permission for medium- and long-term investment are excluded from the annual foreign exchange aggregate settlement amount, while other declared funds are first counted toward this annual aggregate.

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[Related Regulations]

Title:

Directions for the Declaration of Medium- and Long-Term External Debts by Private Enterprises

Inactive Regulations

Amended Date: January 29, 2003

[Print]

[Print-NoSerialNumber]

  1. These Directions are established to facilitate the reporting of rivateenterprises' medium- and long-term external debts statistics for compilation of the Balance of Payments by the Central Bank of the Republic of China(Taiwan) (hereinafter referred to as "the Bank").

  2. Private enterprises may simplify their foreign exchange settlement procedures in accordance with these Directions when reporting medium- and long-term external debts.

  3. The term "medium- and long-term external debts of private enterprises" shall refer to the following foreign currency debts with maturity over one year of private enterprises that are duly established and registered within the territory of the Republic of China:

(1) Borrowings from foreign financial institutions (excluding the offshore banking units inside the Republic of China);

(2) Buyer's credit;

(3) Loans from parent companies abroad;

(4) Corporate bonds issued abroad;and

(5) Other foreign currency debts.

  1. Private enterprises shall, within 15 days after signing a contract for obtaining foreign currency debts specified in Direction 3, fill out the "Top Form" of the Statement of Medium- and Long-Term External Debts by Private Enterprises, and submit it together with relevant documents to the Department of Foreign Exchange of the Bank (hereinafter referred to as "the Department") to declare the contract value and receive a debt serial number. For subsequent inward remittances of disbursements of fund and outward remittances of repayments of principal and interest payments, the enterprises shall indicate the debt serial number on "Declaration Statement of Foreign Exchange Receipts and Disbursements or Transactions" if the transaction involves the New Taiwan dollar. (A sample Statement of Medium- and Long-Term External Debts by Private Enterprises is attached.) Private enterprises that have declared the contract value according to the provisions in the preceding Paragraph and have disbursed principal shall, before the 10th day of the month following the end of each quarter, fill out the "Bottom Form"of the "Statement ofMediumand Long-Term External Debts by Private Enterprises " and submit it to the Department to report the outstanding balance of its mediumand long-term external debts.

  2. When filling out "Statement of Medium- and Long-Term External Debts, Private Enterprises",private enterprises shall separate the creditors into different categories in accordance with Direction 3.

  3. The medium- and long-term external debts shall be declared according to the actual currency of the fund obtained.

  4. If a private enterprise has received the Department's special permission to acquire funds from foreign financial institutions and convert the funds into New Taiwan dollars for medium- and long-term investment in Taiwan, the amount of foreign exchange purchased and sold in connection with the principal and for the repayment of principal and payments of interest shall not be counted toward the enterprise's annual foreign exchange aggregate settlement amount. The authorized bank may proceed with the exchange settlement on the basis of the "Schedule of Drawing and Repayment of Medium- and Long-Term Loans from Overseas Financial Institutions by Private Enterprises" that bears the seal of the Department.

  5. The amount of foreign exchange purchased and sold by a private enterprise in connection with the acquisition of funds and repayment of principal and payments of interest shall be in all cases first counted toward the enterprise's annual foreign exchange settlement aggregate amount when the enterprise has acquired medium and long-term funds from foreign sources and has reported the funds pursuant to the provisions herein. The enterprise is not required to apply for permission from the Department, however, for the purchase of foreign exchange for repayment of principal and payments of interest after its quota has been used up. In that case the authorized bank shall proceed with the settlement on the basis of the "Statement of Medium- and Long-Term External Debts by Private Enterprises" that bears the seal of the Department. Attachment: Statement of Medium- and Long-Term External Debts by Private Enterprises

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