Foreign debt funds should be mainly used for economic development and structural adjustment of existing foreign debt.
In terms of the use of foreign debt, the country has different regulations on the use of different types of foreign debt. Among them, medium- and long-term foreign preferential loans such as loans from international financial organizations and foreign government loans are mainly used for basic and public welfare construction projects, with an emphasis on the central and western regions; medium- and long-term international commercial loans are mainly used for the introduction of advanced technology and equipment, as well as industrial structure and foreign debt structure adjustment; medium and long-term foreign debt funds borrowed by domestic enterprises shall be used reasonably and strictly in accordance with the approved purposes and shall not be misappropriated for other purposes. If the purpose is indeed changed, it shall be submitted for approval in accordance with the original procedures; short-term foreign debt funds borrowed by domestic enterprises shall be mainly used for It is used as working capital and shall not be used for medium and long-term purposes such as fixed asset investment.
Fixed asset investment projects using foreign debt funds shall implement a project legal person responsibility system, and the project legal person shall be responsible for the effectiveness of the use of foreign debt funds. The foreign debt management department is responsible for the management and supervision of the use of foreign debt funds. In accordance with the provisions of the "Inspection Measures for Major National Construction Projects", the National Development and Reform Commission dispatches special inspectors to major national construction projects that use foreign debt funds to audit the implementation of the projects and the use of funds.