Lagarde (ECB): ‘Potential bankruptcy restricts risk to Evergrande eurozone’

ECB top woman Christine Lagarde firmly believes that the debt crisis of the ailing Chinese real estate firm Evergrande is currently having a limited impact on the eurozone economy. That’s what happens if the company goes bankrupt, she argues.

“Right now, we see China-centric impact and exposure. I can’t speak for the United States, but for Europe, direct exposure is low,” Lagarde told the business channel.

Lagarde also assured that the ECB is closely following developments as financial markets are closely linked.

Evergrande has about 0 260 billion in debt and warned last week that it may not be able to meet its payment obligations.

If the stumbled real estate company goes bankrupt, it will have severe consequences for the entire Chinese economy, as banks, suppliers and customers will face financial losses. In addition, many international banks have provided loans to the real estate group.

ECB top woman Christine Lagarde firmly believes that the debt crisis of the ailing Chinese real estate firm Evergrande is currently having a limited impact on the eurozone economy. If the company goes bankrupt, so be it, he argues. “Now we see the impact and exposure centered on China. I can’t speak for the United States, but for Europe, direct exposure is low,” Lagarde told the business channel. Lagarde promised to closely follow ECB developments because financial markets are so closely linked. Evergrande has about 0 260 billion in debt and warned last week that it may not be able to meet its payment obligations. If the stumbled real estate company goes bankrupt, it will have severe consequences for the entire Chinese economy, as banks, suppliers and customers will face financial losses. In addition, many international banks have provided loans to the real estate group.