The Chinese government urged Evergrande to avoid default

MUMBAI: Chinese regulators have instructed Evergrande Group to avoid short-term defaults on dollar bonds. At a recent meeting with Evergrande executives, the regulators said the company was sending a clear message to bondholders to avoid default, citing sources in a report.

Chinese authorities told the local administration to be prepared for the possible failure of Evergrande. Authorities also ordered local governments to gather groups of accountants and check the group's finances in their areas with the help of legal experts.

It was also instructed to discuss with local developers and government companies to be ready to take over Evergrande's projects.

Local governments have been instructed to set up a legal mechanism to deal with any public outrage if Evergrande goes into liquidation.

Evergrande has a debt of about two percent of China's GDP. The company was due on Thursday to pay નું 25 million in interest on બે 2 billion in foreign bonds. In addition, next week, આવા 25 million in voice-type interest is due.

If interest is not paid within 30 days of maturity, both the bonds will be on the default list.