Market news
24.09.2021, 06:39

Europe has ‘limited’ direct exposure to Evergrande’s debt crisis - ECB's Lagarde

CNBC reports that European Central Bank President Christine Lagarde believes Europe’s direct exposure to the embattled Chinese property company Evergrande would be “limited.”

Investors fear Evergrande will default on a number of bond payments this week.The company is deeply intertwined with China’s broader economy, and many financial institutions are exposed to the cash-strapped developer through direct loans and indirect holdings.

Market experts say a deepening liquidity crisis at Evergrande could send further ripples across the global economy.

Lagarde said the ECB was keeping tabs on the debt-laden property developer. “We are looking at it,” she said. “We are monitoring and I had a briefing earlier on today because I think that all financial markets are interconnected.”

“I have very vivid memories of [the] latest stock market developments in China that had a bearing across the world. But in Europe and in the euro area, in particular, direct exposure would be limited,” Lagarde said.

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