CONFIDENTIAL # 機密
- 13
Ministry of Finance
responsible for the use and repayment of
foreign loans according to state financial
plans
As part of its austerity programme, China has forbidden
new organisations to borrow abroad. In mid February, the State Council further announced that only ten Chinese
organisations had the right to continue to borrow
international commercial loans
(17).
China's debt
service ratio (repayment of principal and interest payments expressed as a proportion of exports) is estimated to be around 10%. According to the World Bank forecast, this will increase to 10 to 15% in the early 1990s when China's foreign debt with maturity of more than one year will exceed US$40 billion.
21.
(e) Developments in the vicinity of Hong Kong
In 1988, Guangdong was the fastest growing province in terms of gross industrial output. Its GNP increased by 16% in real terms (compared with the national average of 11.2% (paragraph 2)). Estimated at about Rmb 87 billion (at constant (1980) prices, excluding output from village-run enterprises), Guangdong's gross industrial output was 33% higher in real terms than in
(17) These include Bank of China, Communication Bank of China, China International Trust & Investment Corporation, China Investment Bank, International Trust & Investment Corporations (ITICS) of Guangdong, Tianjin, Dalian and Hainan, Fujian Investment & Enterprise Corporation and Shanghai Investment & Enterprise Corporation.
GF 323
CONFIDENTIAL #
機密