Investors in the Asian session faced a thrilling moment following the Chinese real estate giant, Country Garden, which almost experienced 'default' due to its debt crisis.
As INTRADAY reported on Monday, the real estate giant has obtained an extension for bond payments amounting to 3.9 billion yuan ($540 million) on Saturday.
However, another crisis hit Country Garden which faced a deadline to make interest payments on two different US dollar bonds today.
It is understood that the property developer missed the coupon payment in early August, where the 30-day grace period ends today and tomorrow (September 5 and 6).
This has triggered market concerns that have pushed the risk-sensitive currencies of the Aussie dollar and the New Zealand dollar to record significant declines in the Asian session.
Failure to make the payment will increase the risk of 'default' and other bondholders to accelerate their payments.
However, the company eventually managed to pay the interest on the two bonds totaling $22.5 million before the last minute.
It indirectly provides some relief for investors, despite the fact that there are still other problems ahead.
This is because Country Garden's total liabilities still have a high debt pile of about $194 billion by the end of June, based on its first half financial results.
