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China will launch a real estate fund to help property developers resolve a crippling debt crisis, aiming for a warchest of up to 300 billion yuan ($44 billion) in a bid to restore confidence in the industry, Reuters reported. The move would mark the first major step by the state to rescue the beleaguered property sector since the debt troubles became public last year.
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Turkey's Financial Stability Committee discussed the impact of global inflation and rising commodity prices on macroeconomic indicators, and the effect of tightening financial conditions on developing countries, it said in a statement, Reuters reported. The committee's meeting came as the Turkish lira slipped to its weakest level against the U.S. dollar since last December, amid concerns about the government's foreign exchange policy in the face of surging inflation and fears of global recession.
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Japan's government slashed its economic growth forecast for this fiscal year largely due to slowing overseas demand, highlighting the impact of Russia's war in Ukraine, China's strict COVID-19 lockdowns and a weakening global economy, Reuters reported. The forecast, which serves as a basis for compiling the state budget and the government's fiscal policy, included much higher wholesale and consumer inflation estimates as surging energy and food costs and a weak yen push up prices.
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Singapore's key consumer price gauge rose at its fastest pace in more than 13 years, official data showed on Monday, increasing pressure on the central bank to consider tightening monetary policy again later this year if inflation pressures persist, Reuters reported. The data showed inflation rising across a broad set of categories including services, food, retail and utilities. The core inflation rate — the central bank's favoured price measure - rose to 4.4% in June on a year-on-year basis. A Reuters poll of economists had forecast a 4.2% increase in June.
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The clock is ticking for the world’s most indebted developer, whose liquidity woes sparked a broader debt crisis in China’s property industry that’s gone on to engulf more home builders, threaten banks and pose growing challenges for President Xi Jinping, Bloomberg News reported. China Evergrande Group, once the country’s largest real estate firm, previously said it was on track to deliver a preliminary restructuring plan by the end of July. That leaves mere days for the builder with about $300 billion of liabilities, just as a shakeup stirs fresh uncertainties.
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Just one month after being declared free from bankruptcy, Indonesian flag carrier Garuda Indonesia announced Friday that it had added three Boeing 737-800 NG aircraft to its operation and would increase its flight frequency by 32 percent in August, xinhuanet.com reported. "This strategy aims to optimize the company's performance. We need to continue boosting operational capacity and restructure the company," Garuda Indonesia President Director Irfan Setiaputra said in a statement.
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Daewoo Shipbuilding & Marine Engineering may face a court-ordered rehabilitation process unless action is taken on a month-long strike there, the company’s main creditor Korea Development Bank said Friday, the Korea Herald reported. “It would be more difficult for DSME to repay its debts as the strike drags on … we’re not going to help the builder unless it gets back to work,” an executive at the state-run bank said, suggesting that the country’s third-largest shipbuilder would have no choice but to ask the court for help if the strike results in a poorer liquidity.
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Taiwan’s financial exposure to Sri Lanka, which declared bankruptcy earlier this month, was NT$3 billion (US$100.28 million) as of the end of last month, with most of it in the banking and the asset-management sectors, the Financial Supervisory Commission (FSC) said in a meeting on Thursday, the Taipei Times reported. Ten local banks had loans totaling NT$350 million — NT$290 million to Sri Lankan companies and NT$60 million to the nation’s financial institutions — as of the end of last month, down 44.6 percent from a year earlier, a commission tally showed.
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Indonesia has launched a crackdown on peer-to-peer (P2P) lenders through a new regulation and capital requirements, in a move that industry sources say should help clean up a booming online lending sector beset by consumer complaints, Reuters reported. The rules, announced this month by Indonesia’s financial services authorities (OJK), set a minimum capital requirement for lenders at a 25 billion rupiah ($1.67 million), up from 1 billion rupiah previously, with an additional demand to maintain at least 12.5 billion rupiah of equity at all times. The regulation took effect on July 4.
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Sri Lankan lawmakers on Wednesday elected an unpopular prime minister as their new president, a choice that risked reigniting turmoil in the South Asian nation reeling from economic collapse and months of round-the-clock protests, the Associated Press reported. The crisis has already forced out one leader, and a few hundred protesters quickly gathered after the vote to express their outrage that Ranil Wickremesinghe — a six-time prime minister whom they see as part of the problematic political establishment — would stay in power.

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