[ad_1]
Chinese authorities have asked local governments to prepare for the possible collapse of the Evergrande real estate group, officials familiar with the discussions said, “suggesting reluctance to bail out the indebted developer,” according to a Wall Street Journal report.
Officials described the published measures as “preparation for the potential storm,” saying local government agencies and state-owned companies have been given last-minute instructions in case Evergrande fails to deal with the crisis in an orderly fashion.
On Wednesday, Evergrande Group said it had reached a deal with bondholders to avoid the default.
And on Thursday, local press reported, the president of Evergrande called on his group to “do everything in their power” to fulfill their obligations.
And the trade newspaper “China Securities Journal” reported that group chairman Xu Xiyin called more than 4,000 company executives on Wednesday evening, urging them to “devote all their energies to resuming work, production and of real estate delivery “.
“Only by fully resuming our work, production, sales and operations will we be able to secure the rights and interests of apartment owners and ensure that investors are paid,” said Shaw Wednesday night.
In a statement to the Schengen Stock Exchange in southern China, the property developer, which has a debt of 260 billion euros, said that one of its subsidiaries, Hengda Real Estate, had negotiated a payment plan of ” interest on bonds due 2025.
And the Bloomberg financial news agency reported that Evergrande will pay 232 million yuan (30.5 million euros) of debt maturing Thursday, on these bonds, at a rate of 5.8%, intended for the bond market. internal.
“But that does not solve the problem,” said AFP, “because of its large debt”.
Other bonds are due Thursday, but the group did not say how it would repay them.
The Wall Street Journal said central Chinese authorities tasked local governments to prevent the disruption and mitigate its impact on homebuyers and the economy in general by limiting job losses – scenarios that are more likely to occur as the group’s situation deteriorates.
Reuters news agency quoted workers in the group on Thursday as saying they feared for their future and their families, and that it had become a question of providing the daily supplement.
Worker Lee Hong Jun says the real estate developer’s debt crisis means food will run out soon.
Christina Zee, an export company in the bustling southern city of Shenzhen, fears Evergrande has swallowed up her savings.
Evergrande, which has $ 305 billion in debt, has stopped paying some investors and suppliers and halted construction on projects across the country, setting off a global wake-up call for upcoming interest payments.
Source link
