It remains unclear whether the Chinese real estate company Evergrande, which is in debt crisis, has defaulted.
The news that the Chinese real estate company Evergrande, which was in debt crisis, officially defaulted in October due to foreign debt bonds that could not be paid even though it was due in October, caused sharp movements in the crypto money markets. With total assets of approximately $370 billion, Evergrande has approximately $305 billion in debt liabilities, which amounts to approximately 2 percent of China's Gross Domestic Product (GDP).
The fact that a company of this size has trouble even in small foreign interest payments is considered as a sign that a larger-scale debt crisis is at the door. It is feared that the group, which has debts to 171 banks and 121 financial institutions in China, falls into payment difficulties, which may lead to a credit crunch across the country.
A report was served by Reuters that the company "officially defaulted" by failing to pay its bond debts within the tolerance period. The grace period for the company to pay its $148.1 million interest debt on three foreign debt bonds due expired on November 10. Speaking to the New York Times, a bondholder announced that the company is making interest payments on two dollar-denominated bonds dated 2022 and 2023. The newspaper did not confirm that payment was made for the third bond dated 2024.
Bloomberg, on the other hand, reported that debt obligations were fulfilled for all three bonds, citing an international clearing house. Clearstream, the clearinghouse, said in a statement to the agency that its customers are being paid interest on the three-dollar bond that matures.
How Cryptocurrency Exchanges Were Affected By The Evergrande Crisis
The reflection of the news flow towards Evergrande on the crypto money markets was also harsh. After the annual inflation in the USA reached its highest level since 1990, Bitcoin reached the highest level in its history by reaching 69 thousand dollars for the first time, and was pulled to 62 thousand dollars in a short time. During the same time, the second largest cryptocurrency, Ethereum, also returned from the record highs of $4800 to $4400.
Congratulations @blackpanda01! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):
Your next target is to reach 100 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out the last post from @hivebuzz:
There will be no defaults, only inflation!