Citing a person close to the company, Reuters reported on  Tuesday, China's largest private property developer, Country Garden, managed to honor interest payments on two US Dollar bonds, due last month.

The grace period for the coupon payments was due to end on Tuesday but Country Garden averted a default.

The embattled Chinese property giant failed to make coupon payments totalling $22.5 million due on August. 6. Both payments had 30-day grace periods, ending on the global Tuesday, as Reuters reported.

Last Friday, Country Garden won approval from onshore creditors to extend a private bond worth CNY3.9 billion ($536 million).