Country Garden has won approval from its creditors to extend payments for an onshore private bond, according to sources and a document seen by Reuters, in a major relief for the embattled Chinese developer as well as the crisis-hit property sector, reports Reuters. Country Garden was seeking approval from its creditors to extend the maturity on a RMB 3.9 billion ($540 million) onshore private bond in a vote that ended on Friday night.
An unprecedented liquidity crisis in China’s vast property sector is a major risk to a sputtering post-COVID recovery in the world’s second-biggest economy, which has rattled global markets.
Country Garden debt payment extension buys time for China’s largest private developer to avoid default, and is good news for financial markets and the Chinese government, which has announced a raft of measures to support the property sector.
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