Argentina’s latest capitulation may have helped to keep Turkey out of the headlines in recent weeks but some believe the latter’s banking sector could ultimately provide the most dramatic fireworks, the Financial Times reported. When a country has loaded up on foreign currency-denominated debt, the last thing it wants to see is a plunge in its own currency. Unfortunately, Turkey has seen just that, with the lira slumping 12.6 per cent against the dollar since mid-February. A look at the country’s metrics is sobering.

China's stock exchanges have stepped up their scrutiny of the booming asset-backed securities (ABS) market, publishing new rules that require prompt information disclosure and risk management updates from issuers, the International New York Times reported on a Reuters story. China's ABS market has exploded over the past few years as the government's crackdown on shadow banking pushed borrowers to alternative sources of finance. Issuance of ABS jumped to 1.5 trillion yuan ($236.84 billion) last year, from almost zero in 2013, according to consultancy China Securities Analytics.

General Motors will stay in South Korea for at least 10 years and set up its Asia-Pacific headquarters in the country, government officials said on Thursday, revealing terms of a deal aimed at rescuing the U.S. automaker’s struggling GM Korea unit, Reuters reported. The U.S. car maker’s Korean unit averted a bankruptcy filing with a wage deal clinched last month, but analysts and customers, as well as the South Korean government, have had doubts about GM’s commitment and about how long the loss-making company will remain in business.

With corporate-debt defaults on the rise, China’s securities regulator will probe bond funds to ensure that they have proper risk controls in place, according to people familiar with the matter. The China Securities Regulatory Commission’s investigation will include whether individual firms’ funds are shuffling high-risk bonds between them, said the people who asked not to be named as the discussions aren’t public, Bloomberg News reported. One suspicion is mutual-fund companies may be motivated to beautify their holdings to avoid a mass withdrawal by investors, the people said.

A Shanghai court imprisoned a tycoon who used a mountain of debt to buy the Waldorf Astoria hotel. Small Chinese companies are increasingly saying they cannot repay their bills, as money gets more expensive or harder to find, the International New York Times reported. For other private businesses, the cost to borrow has shot up. Faced with the looming consequences of a decade-long borrowing binge, the Chinese government is intensifying its efforts stamp out risky lending and speculative froth from the world’s second-largest economy.

Indonesia’s household consumption, a major contributor to GDP, has been growing at a lacklustre rate in recent years because of weak commodity prices and currency devaluations, the Financial Times reported. The latest economic indicators and FT Confidential Research data show signs of recovery, although the overall outlook remains precarious. This situation is likely to drive pro-growth President Joko “Jokowi” Widodo to support households with subsidies, a populist policy that is incompatible with his fiscal reform agenda as he seeks re-election in April next year.

South Korea said on Wednesday that an impending deal with General Motors to refinance its local unit will ensure the U.S. automaker remains in the country for at least 10 years, as its rights to sell shares and assets will be curtailed, Reuters reported. GM and South Korea reached a preliminary agreement last month to inject $4.35 billion into the loss-making unit to keep it afloat. GM has also announced plans to close one of its four South Korean plants, cut headcount by almost 3,000 and has reached a deal on wages with its workers.

China credit spreads hit their widest level in nearly two years this week following new regulations that undermined long-held assumptions about implicit guarantees on debt linked to local governments, the Financial Times reported. Chinese localities have long used arm’s length local government financing vehicles (LGFVs) to skirt restrictions on direct fiscal borrowing and to finance infrastructure, contributing to a surge in economy-wide debt since 2008.

Australian fashion brand Metalicus has entered voluntary administration and will today begin a major sale across all of its outlets, SmartCompany.com.au reported. In an email to customers on Wednesday evening, the company acknowledged the “difficult period for our staff and customers”, as it explained plans to launch a sale event at all of its flagship stores, Myer concession outlets and online, starting Friday. Metalicus said the sale event will involve “significant savings on all pieces”.

Indian tycoon Vijay Mallya lost a U.K. lawsuit filed by Indian banks seeking to collect more than 1.15 billion pounds ($1.55 billion) amid allegations that he committed massive fraud. Judge Andrew Henshaw in London Tuesday said the lenders, including IDBI Bank Ltd., can enforce an Indian court ruling that relates to allegations that Mallya willfully defaulted on about $1.4 billion in debt for his now-defunct Kingfisher Airlines Ltd, Bloomberg News reported. Henshaw also refused to overturn a worldwide order freezing Mallya’s assets. The 62-year-old is fighting numerous lawsuits in the U.K.