Is the foreign debt capitalized and included in the foreign debt quota?

The foreign debt limit of foreign-invested enterprises is the company's pledge, that is, the maximum limit. The repayment or conversion of the incurred foreign debt does not affect the foreign debt limit. After the repayment of the incurred foreign debts, you can still continue to borrow foreign debts within the quota.

Converting foreign debt into capital is called debt-to-equity swap or capital increase in foreign exchange management. Of course, the amount of foreign debt will change because the registered capital has increased, and the investment capital is calculated according to a certain proportion of the registered capital. This difference can be made up by foreign debt. Therefore, after the foreign debt is converted into capital, it is possible to continue to borrow foreign debt. However, the foreign debt limit requires the foreign exchange bureau to calculate and deduct your medium and long-term foreign debt limit, short-term foreign debt balance and guarantee amount.