Lagarde (ECB): ‘Potential Evergrande bankruptcy limits risks to the eurozone’

Lagarde (ECB): 'Potential Evergrande bankruptcy limits risks to the eurozone'

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

Christine Lagarde, president of the European Central Bank, is convinced that the debt crisis in troubled 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, as per its judgment.

“Right now, we are seeing impact and exposure focused on China. I can’t speak for the US, but as far as Europe is concerned, direct exposure remains limited,” Lagarde said in an interview with Business Channel.

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

Evergrande has 260 billion euros of debt 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 incurring financial losses. In addition, many international banks have also provided loans to the real estate group.

Christine Lagarde, president of the European Central Bank, is convinced that the debt crisis in troubled Chinese real estate giant Evergrande is currently having a limited impact on the eurozone economy. This would also be the case if the company went bankrupt, she says, “Right now, we’re seeing impact and exposure focused on China. I can’t speak for the US, but as far as Europe is concerned, direct exposure remains limited,” Lagarde said in an interview with Business Channel. Lagarde also emphasized that the ECB is closely following developments, as financial markets are very close connected. Evergrande has 260 billion euros of debt 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 incurring financial losses. In addition, many international banks have also provided loans to the real estate group.

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