Evergrande, a troubled Chinese developer, made the payment on a $951 million bond to avoid a multibillion-dollar debt default. The report of them not being able to meet the deadline and make the payment had rattled global financial markets. On Friday, the group made an overdue $45.2 million payment on a bond, a newspaper reported.

The bond matures in March 2023, the South China Morning Post newspaper reported, citing unidentified sources. Had they not made the payment, it would have been declared in default.

Friday marked the end of a 30-day grace period after Evergrande missed a payment that was due on September 29. It was the second time the developer, which owes 2 trillion yuan ($310 billion), paid bondholders one day before it would be declared in default.

The real estate firm’s struggle to comply with tighter official curbs on borrowing has prompted fears a default might trigger a financial crisis. However, officials tried to discredit the investor fears by saying the debt problems can be controlled. They further added that there should be no impact on the financial industry.

The ruling Communist Party is pressing companies to reduce debt levels it considers dangerously high.

As per experts, Beijing can prevent a credit crunch if Evergrande defaults on debts to Chinese banks and bondholders but wants to avoid appearing to arrange a bailout while it tries to force other companies to rely less on borrowed money.

A slowdown in construction helped depress China’s economic growth to an unexpectedly low 4.9% over a year earlier in the three months ending in September. Forecasters expect growth to decelerate further if the financing curbs stay in place.

The firm still holds a massive amount of debt. Its total liabilities are valued around $300 billion and the company still has $148 million worth of unpaid interest, due last month.

As per a CNN report, Evergrande also has a few hundred million dollars worth of payments this year.

(With inputs from Associated Press)