Home> Living in Guangdong> Law> Law Service
SAFE: Further perfects administration of foreign exchange for cross-border guarantee
2014-June-5 Source: Newsgd.com
Text Size: A A A | Print | Share by E-mail:

The State Administration of Foreign Exchange ("SAFE") recently announced the publishing of the Provisions on the Administration of Foreign Exchange for Cross-border Guarantee (the "Provisions"), on the purpose of improving the regulation of offshore guarantee. The Provision mainly includes the delegation of power, the reform of the regulation of overseas guarantee, the cancelation and the simplification of the administrative approval. In the meantime, it treats both the Chinese enterprise and Foreign-owned enterprise in the same regulation institution, comprehensively regulating the cross-border guarantee. For example, with respect to domestic loans under offshore guarantee, subject to related restrictive conditions, the Provisions allow domestic companies and foreign invested enterprises to enter into agreements voluntarily and handle the performance of overseas guarantee contracts up to a limit of twice the monetary value of the net assets, which means the Provisions give the same treatment to domestic enterprises and foreign invested enterprises. In addition, the Provision also focuses on the risk management, emphasizing the offsite checking and exchange checking, and also accumulates the liability of violation. With the effect as of June 1, 2014, the Provision abolishes 12 relevant regulations on cross-border guarantee.

(This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at Kelly_xie@ktlf.com.cn or by phone on 13926185641.)

Editor: 张斯
Related News
This site contains material from other media for content enrichment purpose only. The Southcn.com website do not endorse such content and do not bear the joint responsibility of their copyright infringement. The views expressed in written material posted to the bulletin boards of Southcn.com are those of the authors and/or publishers. The Southcn.com website does not endorse information products posted by organizations and individuals here. The originators of these information products are solely responsible for their content. For copyright infringement issues, you shall contact Southcn.com within thirty (30) days. Email: falv@southcn.com
Home | About Us | Contact Us | Southcn.com
www.newsgd.com registered number 020074 | ICP Certificate No.B2-20050252