The International Monetary Fund has issued its sternest warning to date on the risk from China’s rising debt burden, urged more aggressive action to curb credit growth and subject state-owned enterprises to the discipline of the market, the Financial Times reported. IMF deputy managing director David Lipton presented the fund’s annual assessment of China’s economy on Tuesday in Beijing, days after a speech in Shenzhen warning of possible risk spillovers to the broader global economy. “Corporate debt, though still manageable, is high and rising fast.

The Reserve Bank of India's (RBI) new restructuring tool unveiled on Monday will raise banks' moral hazard risk because the high debt of these over-leveraged companies means their market capitalisation does not match the haircuts banks are likely to take, the Economic Times reported. Under a new 'Scheme for Sustainable Structuring of Stressed Assets' (S4A), RBI allowed banks to take equity in debt laden firms permitting them to split total loans of struggling companies into sustainable and unsustainable based on the cash flows of the projects.

China Vanke, the mainland's biggest property company by sales, said it will submit details of a proposed $9.3 billion restructuring involving subway operator Shenzhen Metro Group to the stock exhange this week, and expects to resume trading by early July, Reuters reported. Vanke's shares were suspended on the Shenzhen Stock Exchange in December and it announced the deal with Shenzhen Metro in March as its management fought to retain control of the company in a battle with its major shareholder, financial conglomerate Baoneng.

The Reserve Bank of India relaxed guidelines on Monday for lenders restructuring large stressed loans, in a move that could allow banks to more effectively manage bad loans, Reuters reported. Indian banks are grappling with about $120 billion in stressed loans, or 11.5 percent of the total, and RBI Governor Raghuram Rajan has set a deadline of March 2017 for them to clean up the bad loans on their balance sheets. The central bank said late on Monday that lenders would be allowed to carve up stressed loan accounts into two categories.

Turkey needs “a new growth model, a new story. Growth based on hot money flows is over.” Those are the words of Cemil Ertem, chief adviser to Recep Tayyip Erdogan, Turkey’s president, in a television interview on June 9, the Financial Times reported. Mr Ertem is one of many government figures who have castigated Turkey’s central bank for not lowering interest rates quickly enough, and who see foreign portfolio investors and an ill-defined “interest rate lobby” as the enemies of Turkish prosperity.

Singapore said it would overhaul its system to combat money laundering, weeks after it ordered the local arm of a Swiss bank to shut down operations in relation to a laundering and bribery probe, The Wall Street Journal reported. Monday’s announcement comes as prosecutors in Singapore investigate what they said last month was the city-state’s largest-ever money-laundering investigation, involving embattled Malaysian state investment fund 1Malaysia Development Bhd., known as 1MDB.

China’s corporate debt risks sparking a bigger crisis if the authorities fail to tackle it, the International Monetary Fund has warned, the Financial Times reported. It is the latest red flag over China’s ballooning debt, which rose to a record 237 per cent of gross domestic product in the first quarter on the back of massive lending designed to boost economic growth. That has put the subject to the fore of this year’s annual IMF review of the Chinese economy with a team from the Fund set to conclude its latest monitoring mission on Tuesday.

While China’s state-owned banks plot debt-for-equity swaps to cut bad loans, one struggling peer-to-peer lender has brewed up a more novel plan: repaying its investors in baijiu, the popular Chinese liquor, the Financial Times reported. Chinatou.com said last week that it was no longer able to return cash to investors following the arrest of its chairman. Instead, it pledged to pay them in baijiu produced by a connected company “to minimise the loss to investors”.

The central bank has placed the New Rural Bank of Binalbagan (Negros Occidental) Inc. under receivership of the Philippine Deposit Insurance Corp. (PDIC). Under Monetary Board (MB) Resolution No. 1002.A dated June 9,2016, the PDIC was named receiver, effectively taking over the bank on June 10. The office address of the bank was registered at National Highway, Barangay Progreso, Binalbagan, Negros Occidental. This comes after the MB decided to prohibit the rural bank from doing business and to place its assets and affairs under receivership.

South Korea’s central bank unexpectedly cut the benchmark interest rate to a new record low Thursday, citing growing risks to the economy including slowing global trade and the government’s push to restructure indebted companies, Bloomberg News reported. The decision to cut the seven-day repurchase rate to 1.25 percent, which was unanimous, was projected by only one of 18 economists surveyed by Bloomberg. While Goldman Sachs Group Inc. was the sole forecaster predicting a cut at this meeting, Citigroup Inc., HSBC Holdings Plc, and Nomura Holdings Inc.