Evergrande’s ‘great wall’ is in the process of being restored by ensuring its ‘terracotta’ is paid a salary.
Evergrande Group China will prioritize the payment of salaries of foreign workers and its suppliers after regulators urged the developer to avoid any risk of social unrest.
Authorities are particularly focused on ensuring that salary payments are made before the New Year celebrations starting February 1, 2022 where employees will go on holiday for the convenience of returning to their hometowns.
Evergrande has a total of 163,119 employees as of June 30 and indirectly supports the lives of many more employees through its vendors.
Evergrande and several other developers were instructed to make the salary payments following Xi Jinping's government's premiums that upheld social stability even though some of them were struggling with heavy debt problems.
The directive proves the government’s deep involvement in Evergrande’s decision -making with the Communist Party’s priorities likely to overtake banks, bondholders and shareholders.
Meanwhile, the People's Bank of China and Guandong are working to reduce Evergrande -related risks from affecting the economy as well as protect home buyers and ensure social stability.
Guangdong officials and Evergrande executives are currently contacting local authorities to discuss ways to pay salaries.
Among the proposed payment methods are the surplus project funds used to pay the salaries of foreign workers and suppliers and use unsold apartments to cover fees or return the proceeds from the sale of undeveloped land to pay suppliers and workers.
