2023-08-16 14:51:36
By Le Figaro with AFP
Posted yesterday at 13:24, Updated yesterday at 14:51
Country Garden is one of China’s largest real estate groups. TINGSHU WANG / REUTERS
The group, which has long been deemed financially sound, was unable last Monday to repay two interest on loans.
One of China’s biggest real estate groups, Country Garden, whose astronomical debt burden worries the markets, warned on Wednesday that “considerable uncertaintiesweighed on his reimbursements. The group, which has long been deemed financially sound, was unable last Monday to repay two interest on loans and formally risks defaulting in September if it does not pay. “At present, there are considerable uncertainties regarding the repayment of bondsCountry Garden said in a statement to the Shanghai Stock Exchange.
The setbacks of developer Country Garden, long reputed to be financially sound and now ultra-indebted, raises fears of a bankruptcy with immeasurable consequences for the financial system in China, two years after the descent into hell of its competitor Evergrande. Its situation is a source of nervousness on the markets because the group estimated its debt at some 1,152 billion yuan (150 billion euros) at the end of 2022. The Bloomberg agency puts it at around 1,400 billion yuan (176 billion euros). .
Against all expectations, Country Garden had announced during the weekend to suspend the quotations of a dozen bonds. The group’s setbacks are the direct consequence of a crisis of unprecedented magnitude in real estate, a sector which, along with construction, has long represented a quarter of China’s GDP (Gross Domestic Product). Country Garden, which employs tens of thousands of employees, is listed in the Forbes list of the 500 largest companies in the world.
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