Sumary of UPDATE 5-China Evergrande’s liquidity crisis deepens, report flags interest payment miss:
- By Clare Jim5 Min ReadHONG KONG (Reuters) -China’s major banks have been notified by the housing authority that Evergrande Group won’t be able to pay loan interest due Sept.
- 20, Bloomberg reported, underlining the broadening impact of the property developer’s liquidity crisis.
- People gather to demand repayment of loans and financial products as security personnel guards outside Evergrande’s headquarters in Shenzhen, Guangdong province, China, September 15, 2021. REUTERS/David KirtonThe troubles ailing the nation’s no.
- 2 property developer has already sparked social anger among investors and homebuyers and raised risks for China’s vast financial system.
- It added that Evergrande is still discussing with banks the possibility of extending payments and rolling over some loans.
- The indebted property developer is scrambling to raise funds to pay its many lenders and suppliers, as it teeters between a messy meltdown with far-reaching impacts, a managed collapse or the less likely prospect of a bailout by Beijing.
- Regulators have warned of broader risks to the country’s financial system if the company’s $305 billion of liabilities aren’t contained.
- Evergrande on Tuesday said it has engaged advisers to examine its financial options and warned of cross-default risks amid plunging property sales and lack of progress in asset disposals.