Evergrande staves off default, pays overdue dollar bond interest

Next interest payment deadline comes due in a week's time

China Evergrande Group pulled back from the brink of default by paying a bond coupon before Saturday’s deadline, giving the property giant at least another week to come to grips with a debt crisis that has rattled investor confidence in the world’s second-largest economy.

The $83.5 million payment to international bondholders surprised some China watchers who had expected Evergrande to prioritise local creditors, suppliers and disgruntled homebuyers — many of whom are waiting for the company to make good on overdue obligations.

While the news helped fuel the biggest weekly rally in Chinese junk bonds since 2012, Evergrande creditors are still bracing