China advises banks that Evergrande will not repay loan interest on 9/20 – Bloomberg | Crédits photo: Xing Yun / Cost picture / Sipa USA / SIPA
September 15 (Reuters) – China’s Ministry of Housing, Urban and Rural Development has informed major banks that real estate group China Evergrande will not be able to repay interest on its loans due on September 20, Bloomberg News reported on Wednesday, citing sources familiar with the matter.
Number two in real estate in China, Evergrande has a debt of around 1.970 billion yuan and many fear that it will be forced into bankruptcy, which could have repercussions on the entire Chinese financial system.
The group is continuing negotiations with its creditor banks over the possibility of staggering its repayments or extending the terms of some of its loans, Bloomberg reported, adding that the Housing Department would hold a meeting with the banks this week. (Sarah Morland report in Gdansk, French version Bertrand Boucey, edited by Blandine Hénault)