China: Evergrande averts bankruptcy for the time being, debts remain high – economy

According to a media report, the heavily indebted Chinese real estate company Evergrande has given itself some breathing space by paying interest on a bond. According to media reports, Evergrande will pay the $ 83.5 million before a deadline on Saturday.

The money was actually due on September 23, but there was a grace period of 30 days. Had Evergrande not been able to raise the money on time, a formal default on payment would have been the result. Evergrande dollar bonds soared on Friday morning in response to the news. The company’s shares also rose about four percent.

Evergrande is considered the world’s most heavily indebted real estate company. There is an urgent need to raise funds in order to be able to pay banks, suppliers and bondholders on time. The company is so large that some experts fear a “risk of contagion” for China’s economy and beyond. Further interest payments on bonds will be due in the coming weeks and months.