This Notice systematically integrates the domestic foreign currency loan management rules scattered across multiple documents, and simultaneously repeals five old documents including Hui Fa [2002] No. 125, aiming to form a unified and transparent management system. The main contents are as follows:

1. 1. Optimization of Account Management Rules

The new rules continue the management model that primarily uses special accounts for foreign currency loans, but enhance flexibility. For example, one loan may correspond to multiple special accounts, and multiple loans may share one special account.

2. 2. Expansion of Foreign Exchange Settlement Facilitation Scope

Eligible foreign exchange loans backed by goods or services exports may be directly transferred to the enterprise's current account foreign currency settlement account and settled in accordance with current account rules. Two conditions must be simultaneously met: first, self-liquidating, with export foreign exchange receipts as the primary repayment source for the loan; second, the loan corresponds one-to-one with a specific export transaction.

The new rules expand the facilitation scope for settlement of domestic foreign currency loans from the original goods trade sector to the services trade sector. Meanwhile, it is clarified that goods trade settled in foreign currency between institutions in special supervision zones and institutions outside the zones or between institutions in other special supervision zones is deemed to have a goods export background. Foreign exchange loans without an export background still may not be settled.

3. 3. Cancellation of Administrative Approval for Foreign Exchange Purchase to Repay Loans

The requirement for SAFE approval for purchasing foreign exchange to repay loans is canceled, and banks are instead authorized to handle such transactions directly. The repayment funds may not enter the domestic foreign exchange loan account earlier than 5 working days before the loan maturity date or the actual repayment date.

For domestic foreign currency loans with an export background, borrowers are still required to prioritize repayment with export foreign exchange receipt funds or own foreign exchange funds, and may purchase foreign exchange for repayment only under special circumstances.

4. 4. Expansion of the Scope of Pledgeable Foreign Exchange Funds

The original policy only allowed enterprises to pledge funds in their current foreign exchange settlement account when apply for RMB loans. The new rules expand the pledgeable scope to include foreign exchange funds in capital account, increasing the flexibility of enterprise fund utilization.

5. 5. Strengthened In-process and Post-process Supervision

       Specific business handling requirements and data reporting obligations are clarified, and SAFE will strengthen statistical monitoring, verification, and inspection to prevent related risks.