December 3, 2023
Chinese giant Evergrande announces small deal to ease market soon |  Economie

Chinese giant Evergrande announces small deal to ease market soon | Economie

The giant Chinese real estate company Evergrande, which is on the verge of bankruptcy, announced on Wednesday (22) a small agreement with a local creditor, to avoid defaulting on interest payments on bonds, which would ease the tension in the global economy. The position of the group, with accumulated debt of more than $300 billion, continues to keep international markets in check.

In a statement to the Shenzhen Stock Exchange (South China), its subsidiary Hengda said it had negotiated a plan to pay interest on overdue bonds, estimated at $35.9 million.

However, the statement did not mention the interest payment on another security due on Thursday (23).

This agreement represents a short respite for the real estate developer, which employs 200,000 people, is present in more than 280 cities and claims to create 3.8 million indirect jobs in China.

Analysts note that this measure represents a temporary relief for the markets.

Founded in the 1990s, Evergrande has experienced frenetic growth fueled by massive debts that now exceed $300 billion.

Last week, the group admitted it was “under enormous pressure” and acknowledged the possibility of failing to meet its commitments.

Evergrande’s situation, with around 1.4 million homes being delivered under construction, has sparked protests from customers, suppliers and investors fearing losing money.

Its president and founder, Xu Jian, told his team this week that the group “may emerge from its darkest moment soon.”

The company has hired experts to try to prevent the collapse, and according to information from Bloomberg, government regulators have also sent a team of advisors to help the group.