Asia Pacific

State Bank of India, the country's largest lender by assets, today tapped into the debt market to raise short-term funds for the first time in three months, as the banking system continued to face a severe liquidity crunch, the Wall Street Journal reported today. The state-run bank privately placed 11.50 billion rupees ($255 million) of certificates of deposit maturing in March and the deposits will pay a yield of 8.97 percent.

DP World said Wednesday it sold 75 percent of its Australian port interests to an infrastructure fund managed by Citigroup Inc. for around 1.5 billion Australian dollars ($1.49 billion) to reduce debt, the Wall Street Journal reported today. The Dubai-based ports operator, majority-owned by government conglomerate Dubai World, will retain a 25 percent interest in DP World Australia, which operates five container terminals. The sale price includes repayment of loans owed to DP World by DP World Australia, it said.

The chief executive of the Indian Banks Association indicated today that banks will ensure microlenders remain fully funded in the short term to help them overcome temporary hiccups in repayments and maintain business as usual, the Wall Street Journal reported today. Indian microlenders have been plagued by liquidity issues after the southern Indian state of Andhra Pradesh recently enacted laws to tighten regulation of the microfinance industry.

China has promised to take further “concerted action” to support European financial stabilisation, including continuing to buy the bonds of countries at the centre of the sovereign debt crisis, the Financial Times reported yesterday. Officials said that Wang Qishan, a Chinese vice-premier, had given assurances that China would step up support for European stabilisation efforts “if necessary”. Wang made the pledge during the third annual China-EU High Level Economic and Trade Dialogue, held in Beijing on Tuesday.

The Bank of Japan said that it will “steadily” provide liquidity, as a climb in short-term borrowing costs posed a risk to the nation’s expansion, Bloomberg News reported today. “The bank will steadily purchase various financial assets and provide longer-term funds” so that “the effects of comprehensive monetary easing spread,” it said in the statement in Tokyo today. It left the size of its asset-buying fund and credit programs at 5 trillion yen ($60 billion) and 30 trillion yen respectively and kept the key interest rate unchanged.

Creditors of Vietnam Shipbuilding Industry Group, better known as Vinashin, are seeking a commitment from the government that it will not let the state-run shipbuilder fail, Dow Jones Daily Bankruptcy Review reported today. Vinashin is seeking a standstill agreement on a $600 million international loan arranged by Credit Suisse in 2007 as a $60 million principal repayment was due Monday.

Shanghai regulators ordered banks in Shanghai, China's financial center, to halt loans for fixed-asset investments—likely affecting construction and property development—for the rest of the year, in a fresh move to contain the flood of credit that has helped accelerate inflation, the Wall Street Journal reported on Friday. Shanghai's banking regulator may be feeling the pressure to rein in the banks under its jurisdiction after new loans in the city grew particularly strongly in November.

One of Australia's largest luxury apartment tower projects has been voluntarily placed in receivership after the developer was unable to service its loans, The Sydney Morning Herald reported. The company behind the $850 million Oracle Broadbeach complex was placed in receivership by Gold Coast developer Michael Nikiforides of Niecon yesterday. The luxury 505-apartment complex was the only project being developed by Niecon subsidiary South Sky Investments. The two-tower development houses the five-star Peppers Broadbeach Hotel, which opened for business just last month.

Embattled Auckland property developer Andrew Krukziener gave up a 10 year battle against Inland Revenue when he yesterday put himself into voluntary bankruptcy, The National Business Review reported. Mr Krukziener surrendered himself to the Official Assignee in Auckland shortly before noon on Thursday, his lawyer Bruce Stewart QC disclosed. Mr Stewart told NBR that Mr Krukziener's fight to satisfy creditors had now proven "too much" for him and he "could not handle it any longer". The Official Assignee has control of Mr Krukziener's affairs for three years.

The receiver for Pike River Coal says it could take a year for the company's insurance claim to be paid out, Radio New Zealand reported. The company went into receivership on Monday, more than three weeks after explosions begain at the West Coast mine in which 29 workers died. Receiver John Fisk of PriceWaterhouseCoopers says the calculations to lodge a claim under the company's business interruption insurance are still being worked on. He told Nine to Noon on Thursday the policy is worth $100 million but the amount paid out may be significantly less.