6.Authorized banks shall abide by the following provisions when operating the
foreign currency loan business:
(1) Counterparties: limited to domestic customers.
(2)Documents Required: Verify and operate in accordance with the foreign
transaction documents provided by the customer or documents approved by the
Bank.
(3)Conversion Restrictions: Foreign currency loans shall not be converted into
NTD; this does not apply, however, to export foreign currency loans after
exportation.
(4)Data reporting: With regard to the disbursement and repayment of foreign
currency loans, daily transaction reports and relevant detailed information
shall be filled out with reference to the Instructions for Completing
Reports on Short-, Medium-, and Long-Term Foreign Currency Loans Made by
Authorized Banks; the monthly balance and turnover amount of such loans
shall be tabulated by category into short-, medium-, or long-term loans
and submitted to the Department of Foreign Exchange of the Bank.
(5)External debt declaration: While operating the foreign exchange business,
if an authorized bank knows that a private enterprise has negotiated abroad
a medium or long term foreign currency loan, the authorized bank shall
advise the enterprise to comply with the Directions for Declaring Medium-
and Long-Term External Debt by Private Enterprises, and notify the
Department of Foreign Exchange of the Bank.
The foreign transaction documents and documents approved by the Bank referred
in Subparagraph 2 of the preceding paragraph, and compliance of relevant
operational issues will be separately prescribed by the Bank.
