Evergrande’s onshore subsidiary has announced that it will pay interest on the bond payments, but the details of the coupon payments are not clear. Considering the area occupied by the major financial players holding Evergrande’s bonds and the total debt over 300 billion USD; this debt naturally is not only the problem of the company but also of the creditors. Therefore, situations related to debt restructuring or postponement point to a solution to the loss of creditors, and the slowdown effect that will arise in relation to creditors’ credit distribution will have the effect of pulling down both the sectoral growth and the Chinese economic growth.
In summary, it is not clear when and how much interest will be paid. In any case, it is not difficult to analyze that the uncertainty in the framework of interest payments other than the principal stems from a payment shortage. There will be an extension, installment payment or a discount on the coupon payment, I guess these are the subject of the negotiations with the creditors. It does not eliminate the long-term financial health problem, and Evergrande’s position is followed in terms of contamination risk. There is a risk of impact to the company, the bank, the financial system and the industry as a whole.
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Hibya Haber Ajansı
Kaynak: Hibya Haber Ajansı