Home Business Take it! Bank of China says it can take control of Evergrande debt crisis – PostToday

Take it! Bank of China says it can take control of Evergrande debt crisis – PostToday

by news dir

Take it! China’s central bank vows to control Evergrande debt crisis

Date 18 Oct 2021 time 10:36 a.m.

The People’s Bank of China has confirmed that it can control the Evergrande debt crisis and is closely monitoring it so it doesn’t affect the economy.

China’s real estate giant Evergrande faces more than $300 billion in debt. and there is a risk of default on payment As a result, many parties are concerned that it may affect China’s economic system.

On October 17, the People’s Bank of China (PBOC) governor Yi Gang said China’s economy was facing challenges such as the risk of default on some companies. which the authorities are closely watching so as not to affect the economy

He confirmed that the aforementioned risks can be controlled and that it is unlikely to affect the country’s economy.

As another PBOC official confirmed, China’s central bank has been able to curb the impact of Evergrande’s debt problem, and the risks to individual financial institutions are small.

As a result, today (Oct. 18) shares of Chinese real estate developers began to rise. After investors relieved their concerns. And the country’s economy is doing well.

After tumbling last week due to investor concerns about the company’s debt crisis. Which is not only Evergrande.

But there are other real estate companies. Chinese companies that have begun to be caught in the spotlight include Modern Land, which has asked for a moratorium on $250 million in bonds due Oct. 25 to the end of January. Next year as the company is improving its liquidity management.

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Photo by Hector RETAMAL / AFP

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