All articles tagged with #liquidity pressure
U.S. banks borrowed $1.5 billion from the Federal Reserve's repo facility amid quarterly tax payments and Treasury debt settlements, indicating temporary funding tightness. SOFR rose above the interest on reserves, reflecting high demand for secured funding, but analysts expect this pressure to be short-lived.
Chinese real estate giant Country Garden has announced that it is unable to repay a loan and expects to miss upcoming overseas debt payments due to plummeting sales amid China's worsening property crisis. The company, once China's largest homebuilder, is facing approximately $187 billion in liabilities and is one of the biggest casualties of the country's imploding real estate market. Country Garden has been selling off assets and negotiating with creditors to restructure liabilities or delay payments, but its struggle to sell new apartments has severely impacted its cash flow. The company's presales of unfinished apartments fell for a sixth straight month in September, down 81% from the same month last year.
Chinese developer Country Garden is facing a crucial round of voting by creditors to extend the maturities of eight onshore bonds by three years, as the company grapples with liquidity pressure amid a slump in sales. The voting comes after Country Garden narrowly avoided defaulting on its debt twice this month. The developer, which has not yet defaulted on its debt obligations, faces 108.7 billion yuan ($14.9 billion) of debts due within a year, while its cash level stands at around 101.1 billion yuan. A default by Country Garden could worsen China's real estate crisis and strain its banking system, potentially impacting the overall economy.