The full extent of the coronavirus pandemic-inflicted damage on Philippine companies and the local financial system will only begin to manifest itself over the next couple of years, as there is always “a lag time before you see the dead bodies,” INQUIRER.net reported. As such, banks and their large corporate borrowers will likely need to enter into contentious and difficult negotiations in the medium term to rehabilitate loans that would otherwise go into default as a result of the ongoing public health crisis. “[Banks’] problem loans have almost doubled in July. Was that the peak?

Bickering among Indian government ministries and a deferred top court decision on the sale of bankrupt telecom companies’ rights to use mobile phone spectrum has derailed the resolution of the industry’s biggest bankruptcies, leaving banks waiting for $5.7 billion in payments, Bloomberg News reported.

G7 finance ministers on Friday backed an extension of a G20 temporary freeze in debt payments and recognized the need for broad debt relief in the future, while taking aim at G20 member China over a lack of transparency in its lending, Reuters reported. The G20 Debt Service Suspension Initiative (DSSI), approved in April, is aimed at helping developing countries get through the fallout from the coronavirus pandemic. So far, it has helped 43 countries defer $5 billion in official debt service payments.

More corporates are expected to descend into defaults as the business disruption brought about by the Covid-19 pandemic continuing to unfold resulting in significant financial and operational restructuring across many industries, The Malaysian Reserve reported.

India’s corporate affairs ministry has extended suspension of new bankruptcy filings for three months from Friday, a statement from the ministry said, Bloomberg News reported. Bankruptcy filings, that have been in progress from earlier this year, have been halted to help financially-strapped borrowers hit by the pandemic, stay out of court. The move comes as the government seeks to cushion an economy already contracting at the worst pace in decades from more damage. The move has been challenged by banks, already saddled with one of the worst bad-debt ratios in the world.

Following a summer marred by the ongoing coronavirus pandemic the situation being faced by the island’s hoteliers remains dire, and prospects are bleak, the Cyprus Mail reported. According to the Cyprus Hotel Association (Pasyxe) and the Association of Cyprus Tourist Enterprises (ACTE), which counts among its members some of most prominent luxury hotels in the island, the financial situation at the moment does not leave room for optimism.

The National Company Law Appellate Tribunal (NCLAT) has set aside the NCLT order rejecting the insolvency plea filed against Andhra Pradesh-based Coastal Oil Gas Infrastructure on the grounds of delay in filing, Business Standard reported. A three-member NCLAT bench has now directed the Hyderabad bench of the National Company Law Tribunal (NCLT) to admit the plea filed by the financial creditors -- Bank of India and Central Bank of India -- and decide it "expeditiously" within one month.

Debt-laden China Evergrande Group, the country’s second largest property developer, has pleaded for government support to approve a restructuring plan that has languished for four years, warning it faces a cash crunch that could lead to systemic risks, according to people familiar with the matter, Reuters reported. The company, the most indebted developer in China, made the request in a letter to the government of southern Guangdong province dated Aug. 24, according to three people who confirmed the letter’s authenticity.

Australia said on Friday it would simplify bank lending rules to free up credit in a bid to stimulate the economy, which slid into its first recession in nearly 30 years due to the coronavirus pandemic, Reuters reported. Shares of Australia’s “Big Four” banks rallied after the announcement in early trade, with the heavyweight financial sector surging more than 3%. The benchmark index was up more than 1%. National Australia Bank and Westpac Banking rose nearly 6%, while Commonwealth Bank of Australia was up more than 2%. Australia and New Zealand Banking Group rose nearly 5%.

India’s corporate affairs ministry is proposing to extend a suspension of new bankruptcy filings that has been in place since earlier this year, people familiar with the matter said, Bloomberg News reported. The proposal is to extend the halt on new bankruptcy cases for another six months past its currently scheduled ending point this week. It must get final approval from Finance and Corporate Affairs Minister Nirmala Sitharaman, according to the people, who asked not to be identified because the details are private.