Evergrande has reached an agreement with the holders of one of its debts

Chinese development giant Evergrande announced on Wednesday that it had reached an agreement with the holders of one of its debts that would allow it to pay interest on time, on September 23. Financial markets are concerned about the possible collapse of China's second-largest development group, which could potentially derail the country's economy. Hengda Real Estate Group, a division of Evergrande, said in a statement to the Shenzhen Stock Exchange on Wednesday that it had agreed on a plan to pay interest on the bond due in 2025 on Thursday, September 23. It added that investors "who bought and owned the bonds before 22 September 2021 are entitled to interest payments". It did not disclose details of interest payments, only stating that the bond "had already been settled in private negotiations". According to Refinitiv, the amount of the payment should reach 232 million yuan (30.55 million euros). Paying interest will help calm nervous markets, but Evergrande's restructuring plans will be needed to restore confidence, analysts said. The Evergrande crisis has even provoked rare protests in China from investors and suppliers demanding their money. The group is working to prevent collapse and has hired experts, including Houlihan Lokey, which has also provided restructuring advice to Lehman Brothers. Bloomberg reported last week that state regulators had sent a team of financial advisers to assess the situation in Evergrande. Abdul Abiad, director of the macroeconomic research division at the Asian Development Bank, told reporters at a virtual briefing that "the capital buffers of the Chinese banking system are strong enough to absorb the shock even in the event of a collapse of an evergreen-sized company if it occurs."