China Evergrande has left makers wondering if they can pay | Economic Affairs

China-based Evergrande Group has left foreign nationals speculating on whether to repay interest rates on Wednesday, despite agreeing to repay a $ 1.5bn loan to a Chinese bank.

With $ 305bn in debt, Evergrande has raised concerns that its problems could spread through China’s financial system and into the rest of the world – concerns that have eased as China’s central bank promises to protect the interest rate of repatriates.

Evergrande said in exchange for it to sell the $ 9.99 billion ($ 1.5bn) it owned by Shengjing Bank Co Ltd to a state-owned asset management company.

The bank, one of Evergrande’s credit providers, has demanded that all of its sale be liquidated by the end of Shengjing’s loan. As of the first half of last year, the bank had $ 7 billion ($ 1.08bn) in debt to pay back to Evergrande, according to a report by CCOK International, according to reports.

This shows that Evergrande, which was once a major exporter in China and is now expected to be one of the largest in the world, prioritizes those who repay loans abroad rather than those who live abroad. It also highlights the role of state-owned enterprises in the Evergrande religion.

The company is due on Wednesday to make a $ 47.5m interest rate on its price of 9.5% on March 2024 dollars.

The company missed the last day to repay the dollar last week, a day after its largest Chinese business said it had held secret negotiations with foreign companies to make extra money on yuan condoms.

Evergrande’s silence on its maritime pay has left investors around the world wondering if they will need a major overhaul for the 30-day period after grace favored the conference on September 23 and September 29.

An Evergrande spokesman did not immediately respond to Reuters’s request for comment.

“Right now we are on a waiting list. Debt collectors are making their own decisions and people are trying to figure out how to fall for a falling knife, “said an Evergande-based consultant.

“He failed to pay last week, and I think he may not be able to pay for this. That doesn’t mean he can’t pay the fine… he has 30 days of grace, ”said the counselor, who declined to be named because of concerns.

There is no free dinner

As China’s face grows, Evergrande has now become a face-to-face with developers’ debts that have led to instability in global markets and left women, young and old, sweating.

Evergrande’s troubles hit international markets earlier this month.

In recent weeks, some international businesses have turned their attention to Washington’s political crisis over debt repayments in the US and the Treasure economic downturn that has forced stocks.

Any surprise with Evergrande is able to give the market equipment a lot of bullets.

The Fitch Agency on Wednesday lowered long-term foreign tariffs for Evergrande’s (US) foreign finance (IDRs) and its agencies, Hengda and Tianji, saying they may not have received maritime interest rates last week.

In another developmental report, the electric car company in Evergrande has stopped providing lunch and other food to the work of researchers, Bloomberg News reported, referring to people who are familiar with the matter.

Separately, some of the co-workers, including those working in the machinery factories in Shanghai and Guangzhou, have been asked to take a leave of absence until the end of next month, and give the leave they are due to finish on October 7, Bloomberg says.

Possible in real estate

Beijing is encouraging state-owned and state-owned enterprises such as China Vanke Co Ltd to buy some of Evergrande’s products, experts told Reuters.

Officials hope that the purchase of goods will prevent or reduce any potential conflict if Evergrande encounters a crisis, he says, failing to be identified as a result of the hearing.

On Monday, China’s largest bank pledged to protect potential buyers in the real estate market, not to mention Evergrande in a statement posted on its website, and to inject more money into the bank.

The move has boosted economic sentiment in Chinese stocks over the past few days, with Evergrande stocks rising nearly 17% on Wednesday. Sales were about 11% on west trading.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *