Monday, January 17

Chinese real estate giant has defaulted on loans

The Chinese real estate giant Evergrande, with more than NOK 2.6 trillion in debt, has for the first time defaulted on a loan in foreign currency.

Evergrande was given an RD (restricted default rating) rating by credit rating agency Fitch on Thursday, citing that the debt-ridden company has not paid more than $ 1.2 billion in debt bonds.

RD-ratingen is the second lowest ahead of the D-rating, which means that Fitch believes the company is bankrupt. According to AFP and several financial media, this is the first time Evergrande has been reported to have defaulted on a loan.

It privately owned The Chinese company has been on the verge of bankruptcy in recent months, with a debt of a formidable $ 300 billion. The debt crisis has shaken the market throughout the autumn and created fears that the entire Chinese economy could be destabilized.

Reference-www.aftenposten.no

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