7/4/2023 0 Comments China debt defaultsThe company’s property management arm, Evergrande Property Services, has approximately 2,800 projects in 310 cities in China encompassing a total contract area of more than 680 million square metres, according to the firm’s website.Īnd its Evergrande New Energy Vehicle has set the ambitious goal of developing 14 electric vehicle models ranging from sedans to sport utility vehicles and producing and selling five million of them per year by 2025 and five million by 2035. It has also expanded to other industries, including electric vehicle production, property management, film and TV, theme park construction, life insurance, a hospital, a football club, and the production of food, mineral water and baby formula. Hui Ka Yan is the founder and chairman of China Evergrande Group How many projects does the firm currently have?Įvergrande currently has 1,300 real estate projects in 280 cities in China, according to its website. ![]() The 62-year-old is currently Evergrande’s chairman. Hui graduated from college in 1982 and worked in a steel factory before founding Evergrande, according to Forbes, which lists his current net worth at $11.4bn, making him the 53rd richest person on its Billionaires 2021 list and the 10th wealthiest on its China Rich List 2020. How long has Evergrande been in business?Įvergrande was founded in 1996 in the Chinese province of Guangzhou by Hui Ka Yan. Here’s what you need to know about Evergrande and the impact its current financial situation could have on China and the global economy. The central question is whether Chinese authorities plan to allow Evergrande’s creditors to suffer major losses or whether the country’s communist government, which prizes stability and control, will intervene in some way to avoid a messy default and the damaging ripple effects it could trigger. It’s the latest development in the real estate behemoth’s saga, which is being closely watched in China and around the globe.Įvergrande is currently the world’s most indebted real estate developer. And concerns are mounting that if it defaults on its debt, it could spell disaster for China’s property market and send shock waves through the world’s second-biggest economy.Ī reckoning appeared even closer on Wednesday after Bloomberg News, citing people familiar with the matter, reported that the real estate developer may not be able to make the interest payments on some of its $300bn in liabilities next week and could also miss a principal payment on at least one of its loans. Some of these 11 projects as of March 31, 2020, are the Nigerian Railway Modernization Project (Idu-Kaduna section), Abuja Light Rail Project, Nigerian Four Airport Terminals Expansion Project (Abuja, Kano, Lagos, and Port Harcourt), Nigerian Railway Modernization Project (Lagos-Ibadan section), and Rehabilitation and Upgrading of Abuja-Keffi- Makurdi Road Project.China Evergrande Group is deeply in the red – to the tune of $300bn. This balance is out of a total debt of $6.5 billion available for Nigeria to draw down.Īccording to the government, Chinese loans are project-tied loans. “The Public is assured that Nigeria is fully committed to honoring its debt obligations and has not defaulted on any of its debt service obligations, the media report should therefore be disregarded,” the statement said.Īs of December 2021, DMO said Nigeria’s debt to China stood at $4.1 billion as of September 2021. Read also: Buhari’s Legacy: Nigeria empties treasury servicing debt as fiscal woes worsen ![]() The general public were urged to ignore the publication as it is false.Īccording to the statement from DMO, a closer look at the media publication shows that the body of the publication is completely detached from the headline which gives the impression that the publishers of the report may have sent it out to mislead the public.
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