“The potential bankruptcy of Evergrande limits the risks for the euro zone”

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The impact of a possible bankruptcy of the Chinese real estate giant Evergrande on the euro zone is limited. This is what Christine Lagarde, president of the European Central Bank, said in an interview with the American economic channel CNBC.

Christine Lagarde, President of the European Central Bank, is convinced that the debt crisis of struggling Chinese real estate giant Evergrande is currently having a limited impact on the eurozone economy. This is also the case if the company goes bankrupt, according to its judgment.

“Right now, we’re seeing impact and exposure focused on China. I can’t speak for the United States, but when it comes to Europe direct exposure is still limited, ”Lagarde said in an interview with Business Channel.

Lagarde also pointed out that the ECB is monitoring developments closely, as financial markets are closely linked.

Evergrande is in debt of 260 billion euros and warned last week that it may not be able to meet its repayment obligations.

If the struggling real estate giant goes bankrupt, it could have serious consequences for the entire Chinese economy, with banks, suppliers and customers suffering financial losses. In addition, many international banks have also granted loans to the real estate group.

Christine Lagarde, President of the European Central Bank, is convinced that the debt crisis of struggling Chinese real estate giant Evergrande is currently having a limited impact on the eurozone economy. This would also be the case if the company were to go bankrupt, she said, “Right now we are seeing impact and exposure focused on China. I can’t speak for the United States, but when it comes to Europe direct exposure is still limited, ”Lagarde said in an interview with Business Channel. Lagarde also pointed out that the ECB is following developments closely, as financial markets are very closely linked. Evergrande is in debt of 260 billion euros and warned last week that it may not be able to meet its repayment obligations. If the struggling real estate giant goes bankrupt, it could have serious consequences for the entire Chinese economy, with banks, suppliers and customers suffering financial losses. In addition, many international banks have also granted loans to the real estate group.


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