Asia Pacific

Inflows of capital are posing a growing risk to East Asian macro-economic stability, according to the World Bank’s half-yearly review of regional trends, the Financial Times reported. The report comes amid concern in Asia that a likely fresh round of US Federal Reserve quantitative easing, dubbed “QE2”, will unleash a destablising wash of funds into the region.

Serious Fraud Office chief executive Adam Feeley has confirmed transactions disclosed in the National Business Review concerning South Canterbury Finance's murky involvement in the Auckland Hyatt Regency hotel are part of the investigation his office launched this morning. Mr Feeley said the suspect loans stretched back to 2005, but the timeframe could be stretched as his investigation progressed. The NBR reported in last weeks' print edition that South Canterbury's financial interest in the Hyatt began in 2002.

Ten retirement villages that are owned by the listed Prime Retirement and Aged Care Property Trust have been placed in the hands of receivers after banks including National Australia Bank and Suncorp Metway lost patience with the group, smartcompany.au reported. While Prime Retirement and Aged Care Property Trust are not in receivership, the board expects to appoint administrators from PwC as early as today. Suncorp appointed receivers from Ernst & Young to Prime Trust's retirement villages in Bundaberg, Mackay and Townsville on Friday afternoon.

The Treasury estimates the receivership of South Canterbury Finance could take up to four years to complete, unless sold as a going concern, with the majority of assets being sold only in the second year of receivership, The National Business Review reported. The estimates are given in a report dated September 1 – at the same time as other documents revealed the government’s reasons for rejecting a post receivership offer to buy SCF as a going concern. That offer reportedly came from investor Duncan Saville and was understood to be worth approximately $1.3 billion.

The Trading Corporation of Pakistan (TCP) has nearly reached on the brink of bankruptcy due to end of credit limit from Ministry of Finance (MoF) while several government departments also owe billion of rupees to the national entity, the Daily Times reported. The sources in MoF said Thursday that credit line for TCP of Rs 110 billion has been utilised and tenders for soft commodities are also sitting in cold storage. He said the governments of four provinces, besides Azad Kashmir administration and departments of Northern Areas are also defaulters of TCP for more than Rs 33 billion.

Acom Co. and Promise Co. said they’ve seen an increase in customer inquiries about repayments of overcharged interest since rival consumer lender Takefuji Corp. sought bankruptcy protection two weeks ago, Bloomberg reported. Masahito Osawa, a spokesman for Acom, and Promise’s Risa Matsumura said more clients are asking about refunds for overcharged interest since Takefuji’s collapse, without providing estimates for the potential cost. Takefuji’s Sept.

Labour finance spokesman David Cunliffe says decisions made to reject bids for South Canterbury Finance (SCF) means the cost to taxpayers has been between $300 million and $500 million too much, The New Zealand Herald reported. SCF went into receivership at the end of August, leading to a $1.7 billion government payout to investors, of which $1.6 billion was under the retail deposit guarantee scheme.

The Gillard government has warned banks it's too early to start foreclosing on loans to irrigation farmers in the Murray-Darling Basin, The Australian reported. A report by an independent banking consultant Adrian Rizza warns banks fear at least eight irrigation town may not survive cuts in water allocations to farmers, and that some banks have already started taking action to address their loan exposure in the Murray-Darling Basin.

Sam Coco is ready to step in to save the fruit store chain he founded after it was placed into voluntary administration last week, GoldCoast.com.au reported. The veteran retailer, who sold the Cocos business seven years ago, said he was prepared to roll up his sleeves and reopen at least the two stores that anchor his own shopping centres at Carrara on the Gold Coast and Annerley in Brisbane. The veteran fruiterer, who built a chain of 10 stores from humble beginnings in 1990, sold the business in 2003 to former Bi-Lo founder and millionaire retailer David Weeks.

Speculation is mounting about whether Victorian-based Bendigo Mining will push the northern Tasmanian mine into receivership, ABC News reported. BCD Resources, formerly Beaconsfield Gold, and Bendigo Mining were poised to merge in November with Bendigo lending BCD $5 million. Bendigo now says that BCD has breached the agreement. Unless it can repay the money by tomorrow, Bendigo may move to recover the money from the Beaconfsfield mine, the merger will be off and receivership could be on the cards. Neither company has released information explaining the breaches.