26-October-2021
Corporate News
 
China has ability to address Evergrande situation, still risks remain: IMF
13-Oct-2021

China has the ability to address the issues linked to China Evergrande Group's indebtedness, although there is a risk of the property developer's pain escalating to cause broader financial stress, the IMF said in a report and comments released Tuesday. Evergrande, with more than $300 billion in liabilities, has concerned investors globally after it missed its third round of bond payments in three weeks, intensifying market fears over contagion involving other property developers as a wall of debt payment obligations come due in the near-term. Debt-saddled Chinese property firms took heavy fire in bond markets on Tuesday. "I think the authorities have the means to address the situation," said Tobias Adrian, the IMF's Director of Monetary and Capital Markets Department, in an interview timed with the release of the IMF's Global Financial Stability Report on Tuesday. "They have the fiscal capacity and they have the legal and institutional tools to address this issue. So one thing that would have to go wrong is that communication is not very clear and the necessary steps are not being taken."

News Source:- https://economictimes.indiatimes.com/news/international/business/china-has-ability-to-address-evergrande-situation-still-risks-remain-imf/articleshow/86969530.cms