Evergrande Crisis Like China's Lehman Moment, Reminds Us Of IL&FS: Uday Kotak
NDTV
Global markets have turned shaky ever since China's Evergrande Group crisis triggered.
New Delhi: Global markets have turned shaky ever since China's Evergrande Group crisis triggered. The real estate group is one of China's biggest developers and has total liabilities or debt of more than $300 billion. And according to veteran banker Uday Kotak, the crisis at the group is like "China's Lehman moment." The Chief Executive Officer of Kotak Mahindra Bank also stated that the current situation at Evergrande reminded of the Infrastructure Leasing & Financial Services Limited (IL&FS) crisis.
"Evergrande Seemslike China's Lehman moment. Reminds us of IL&FS. Indian Government acted swiftly. Provided calm to financial markets. The Government appointed board estimates 61% recovery at IL&FS. Evergrande bonds in China trading ~ 25 cents to a $," he tweeted.
What Wrong At Evergrande
The People's Bank of China, its central bank, and the nation's banking watchdog had summoned Evergrande's executives in August and warned that it needed to reduce its debt risks and prioritise stability.
