Credit Suisse Group AG was stung by the collapse of Luckin Coffee Inc. in China following an accounting scandal, which led to a five-fold increase in Asian loan-loss provisions, Bloomberg News reported. The Swiss bank set aside 97 million Swiss francs ($100 million) for soured loans, primarily related to three cases, the largest of which was Luckin Coffee, according to a person familiar with the matter. The bank only referred to a “Chinese food and beverage company” in its earnings statement Thursday.

Developing countries need about $1 trillion in debt canceled to free up funds to fight the coronavirus pandemic and avert a massive debt crisis, the United Nations said, Bloomberg News reported. Immediate payment waivers coupled with a debt overhaul will help countries stay solvent in the face of as much as $3.4 trillion in obligations due this year and next, according to the UN’s trade and development agency, UNCTAD. The total debt stock of developing countries -- external and domestic, private and public -- stood at 191% of gross domestic product by the end of 2018.

Restructuring experts expect to be paid as much as A$30 million ($19 million) to find a buyer for Virgin Australia Holdings Ltd., the highest-profile airline to fall to the coronavirus, Bloomberg News reported. The debt-laden carrier said Tuesday it handed control to administrators at Deloitte after being overwhelmed by a near-halt in passenger revenue. The estimated remuneration for the voluntary administration is A$20 million to A$30 million, with further costs in the event of a liquidation, according to a circular to Virgin Australia’s creditors posted on Deloitte’s website.

South Korean president Moon Jae-in has warned that the economic crisis stemming from coronavirus is only just beginning as he unveiled a sharp increase in spending to deal with the fallout of the pandemic to almost $200bn, the Financial Times reported. The new measures highlight the long-term economic challenge for countries even after they have dealt with the immediate public health crisis. “We are at the beginning stage of a crisis. A hiring freeze together with a corporate crisis is looming,” said Mr Moon.

Kotak Mahindra Bank Ltd. plans to raise about $1 billion with a new share issue in a move that will strengthen its capital buffers and reduce the stake held by its wealthy founder, Bloomberg News reported. The Mumbai-based lender didn’t provide pricing details on the 65 million of new shares it said it will issue in a filing on Wednesday. However, under a regulatory formula, they should be priced around the level of the latest two-week average, which works out at about 1,184 rupees ($15).

Bad debt at Chinese banks climbed in the first quarter even as lenders deferred payments on and rolled over a combined 1.5 trillion yuan ($212 billion) in loans after the coronavirus outbreak brought the world’s second-largest economy to a standstill, Bloomberg News reported. After allowing banks to take a more lenient approach on how they classify bad debt, regulators in Beijing on Wednesday revealed the industry’s non-performing loan ratio nudged up just 0.06 percentage point to 2.04% at the end of March.

Japan’s long-suffering regional banks face the biggest threat to their survival since the 1990s post-bubble malaise as the coronavirus hammers their few remaining profit drivers, Bloomberg News reported. Analysts and investors are predicting some local lenders will eventually be delisted or bailed out by the government as bad loans climb and investment income evaporates in the wake of the crisis.

The collapse of one of Singapore’s biggest oil traders has raised the prospect of a severe liquidity crunch in the city-state’s under-pressure commodities sector, threatening a wave of defaults and bankruptcies, the Financial Times reported. Investors and analysts warn that banks are likely to cut their exposure to the industry after heavily indebted oil trader Hin Leong Trading filed for bankruptcy protection.

In the second week of April, deep into India’s initial 21-day lockdown to curtail the spread of the coronavirus, senior officials at Bajaj Finance Ltd. held a conference call, Bloomberg News reported. The prognosis wasn’t good. In just 10 days the keystone shadow lender had lost 350,000 customers and almost 50 billion rupees ($651 million) in assets under management. Small and medium enterprises were under strain and it was considering setting aside money for losses in case large borrowers went under.

India’s banks are freezing credit lines to shadow lenders as the coronavirus crisis shuts down commerce in Asia’s third-largest economy, but leaving this sector in the lurch risks wider financial contagion, Reuters reported. All major state-owned and private banks have stopped lending to non-banking financial companies (NBFCs) due to concerns about their financial health as businesses they lend to reel from the impact of the pandemic, four industry executives, who asked not to be named due to the sensitivity of the situation, told Reuters.