Nation r chaussure shox educes foreign debts

Nation r chaussure shox educes foreign debts
chaussure shox rubber slippers flip flops manufacturer NHL JERSEY cargo elevator Paralyseurs électriques panoramic elevator Lightning Rod lightworks limit switch Lingerie femme liquid plant lithium batteries lithium polymer little black dresses lockstitch sewing machine long gilet Low pressure injection lubricated plug valve lucky bamboo
Nation reduces foreign debtsPublished: 14 Oct 2009 09:02:01 PST

By Cong Mu

The country's gross external debts at the end of June rose slightly from the end of March, but their rate of decline compared with the same period last year has picked up.

Outstanding foreign debts amounted to $360.6 billion at the end of the second quarter, down 15.6 percent compared with the same period last year when outstanding foreign debts stood at $427.4 billion, according to the data published by the State Administration of Foreign Exchange (SAFE) Tuesday.

In comparison, gross external debts were $336.7 billion at the end of the first quarter, shrinking 14.2 percent from the same period last year, according to SAFE.

This is mainly due to the repatriation of money by multinational companies which were hit hard by the global financial crisis, economists said.

The repatriation and the contraction of trade finance were the main factors contributing to the debt decline, while the term structure of some of the debts might also have played a part in it, said the economists led by Qu Hongbing, HSBC's chief economist in China.

They ruled out the influence of the exchange rate because the yuan has been steady against the US dollar since the end of 2008.

The People's Bank of China set the central parity rate of the yuan at 6.8269 against the dollar Wednesday.

Calyon predicted the yuan will appreciate to 6.5 against the dollar by the end of 2010, said Sebastien Barbé, head of Emerging Market Research and Strategy at the French investment bank.

China reduced its foreign debts to improve the management of national assets, said Ding Jianping, director of the Research Center for Modern Finance at Shanghai University of Finance and Economics.

China holds a large amount of the US T-bills which offer minimal return. While the country is not able to enitrely pull out of these low-yield assets, it is wise to decrease its liabilities, Ding said.

"Our debts incur a higher interest rate than our credits, so it's better for us to pay back our debt as soon as possible," he said.

In the first six months of 2009, China borrowed $9.3 billion in long-term debts from foreign countries, down 52.2 percent from the same period last year. At the same time it paid back $19.5 billion long-term debt principals, up 122 percent from the same period last year, the SAFE data showed.

In the long run, the continuous reduction of foreign debts, especially short-term ones, is not conducive to economic development, as short-term financing is critical for corporate operations and consumption, the economists said.

The falling rate of the outstanding short-term foreign debts slowed in June, with the amount reaching $194.4 billion, down 7.8 percent from the same period last year. The rate was 17.7 percent three months earlier.

The HSBC economists expect short-term foreign debts to increase if the appreciation expectaion of the yuan rises.

Explore the World, Understand China!
Please log on www.gloaltimes.cn

携帯seo 系统下载 灭火器 クレジット 現金化 グルーポン ASP 即日 融資 网络电话 seoサービス