Jakarta - Domestic market players and regulators are currently still responding optimistically to the issue of Evergrande Group or Evergrande Real Estate Group defaults, said Chief Economist of PT Bahana TCW Investment Management (Bahana TCW) Budi Hikmat.

"Even if there is a default, the impact is not expected to be as severe as the 2008 subprime mortgage crisis because there are two important points that distinguish the two conditions," said Budi through a press release on Monday (27/9).

First, unlike the 2008 financial crisis, the problem of Evergrande's default has been recognized and maybe foreseen by the market for a long time, according to Budi. While the three series of Evergrande bonds have been impaired since May 2021, in June 2021, S&P had downgraded their debt ratings, and in September, Evergrande was called near default.

"There was a time when the market was aware of this potential and provided space to anticipate its