Chinese financial authorities are discussing ways to repay 3.5 billion yuan (US$565.31 million) in loans owed by Zhejiang Xingrun Real Estate Investment Co. Ltd. after the developer collapsed under a mountain of debt, China Securities Journal reported Wednesday. Central bank officials have been meeting with lenders’ representatives and the Fenghua city government, the report said. About 2.4 billion yuan of the debt consists of bank loans while more than 700 million yuan came from high-interest public savings. The company defaulted on its debt payments, saying it did not have enough funds. On Tuesday, the People’s Bank of China said in a microblog that it is not involved in discussions about the fiasco.
– Contact HKEJ at [email protected]