Several Problems in Utilizing Foreign Capital to Avoid Debt Crisis

Abstract

In recent years, with the in-depth and extensive implementation of my country's opening-up policy, my country's foreign investment has also developed rapidly. From 1983 to 1987, my country's total actual utilization of foreign capital was 24 billion US dollars, of which 15.2 billion US dollars were used in foreign loans and 8.2 billion US dollars were absorbed in foreign direct investment. From the perspective of external borrowing alone, during the "Sixth Five-Year Plan" period, my country signed a total of 18.1 billion US dollars of foreign loan agreements, with an average annual borrowing of 3.6 billion US dollars; the actual utilization was 14.7 billion US dollars, an average of 2.94 billion US dollars per year. Last year, my country signed a foreign loan agreement totaling 6.27 billion U.S. dollars, and the total amount of loan withdrawals was 5.33 billion U.S. dollars. It is estimated that by 1990, the scale of my country's use of foreign capital will reach more than 60 billion US dollars.