Evergrande Failed to Make Payments to 2 Banks

Chinese Evergrande Group has failed to make loan payments to 2 banks. The Evergrande crisis continues to grow.

Evergrande Group failed to make the loan payment it was supposed to make on Monday to at least two major banks on Monday. According to Bloomberg's report, Evergrande could not make the said payments as of late Tuesday, according to Chinese time. It is not yet clear whether the banks have officially announced Evergrande's default. According to two sources, some banks are waiting for the holding's loan extension plan before moving on to the next stages. Evergrande has repayments on two of its bonds on Thursday.

The Crisis Continues to Grow

In the current situation, the value of the traded bonds and bills of the real estate giant, which has fallen behind in bank loan repayments, is also decreasing. A bond of Evergrande dropped as much as 30 percent of the issue price in transactions, indicating strong bankruptcy risk. Although China poured $14 billion in short-term cash into the financial system on Friday, concerns about the spread of Evergrande debt risk dominate the markets.