China's foreign borrowings jumped a massive 215.43 percent in the first quarter of 2005 compared to the same period last year.
The State Administration of Foreign Exchange (SAFE) said yesterday that China's overseas borrowings in the first three months of the year totaled US$76.8 billion.
Repayments jumped 280 percent year-on-year to US$73 billion, leaving a net foreign debt increase of US$3.16 billion, down 34.19 percent from a year earlier.
At the end of March, China's total foreign debt stood at US$233.4 billion, up 2.11 percent from the end of last year.
"The size of China's foreign debt continued to climb in the first quarter of 2005, but at a slower pace," SAFE said in a statement. "Foreign debt flows maintained an upward trend, while the proportion of short-term debt rose marginally."
Outstanding short-term debts stood at US$107.9 billion, accounting for 46.22 percent of the total foreign debt.
SAFE did not provide any explanation for the increases in foreign debt during the first quarter.
Previously, SAFE attributed a similar pattern last year to the nation's robust economic growth and expectations of a revaluation of the renminbi or Chinese yuan.
China's foreign borrowing last year was double the 2003 figure, with growth particularly rapid in short-term debts.
Net foreign debt more than tripled during the year as borrowing largely outpaced repayments.
China's economy grew by 9.5 percent last year, and continued at the same pace in the first quarter of this year.
Analysts say ongoing tightening measures by the government have caused funding difficulties for many local businesses, pushing them to increase loans from overseas.
Continued speculation on an appreciation of the renminbi was also seen as a major driving force behind the foreign debt increase. Speculative capital that sneaks in as "trade credits" is usually categorized as a short-term debt.
(China Daily June 8, 2005)
