Asia

Indonesia is preparing a backup plan for flag carrier PT Garuda Indonesia if it fails to reach a deal with creditors, including the option of upgrading air charter PT Pelita Air Service to a scheduled airline, Bloomberg News reported. The course of Garuda’s current talks with creditors hinges on a court decision on a debt petition against the airline, with the ruling set to be announced Thursday, Kartika Wirjoatmodjo, a deputy minister at the State-Owned Enterprises Ministry, said by text message on Tuesday.
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China's economy hit its slowest pace of growth in a year in the third quarter, hurt by power shortages and wobbles in the property sector, highlighting the challenge facing policymakers as they seek to prop up a faltering recovery while reining in the real estate sector, Reuters reported. Gross domestic product expanded 4.9% from a year ago, missing forecasts, as attempts by Beijing to curb lending to the property sector exacerbated the fallout from electricity shortages which sent factory output back to levels last seen in early 2020, when heavy COVID-19 curbs were in place.
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India's central bank said on Monday that policy support is needed for longer for a sustained recovery in Asia's third largest economy from a coronavirus induced slowdown, even as demand has picked up, Reuters reported. Earlier this month, The Reserve Bank of India's (RBI) monetary policy committee kept interest rates steady at record lows and reiterated the need to unwind pandemic-era stimulus only gradually to aid the nascent economic recovery.
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China Properties Group Ltd said on Friday it had defaulted on notes worth $226 million as it failed to secure funds by the maturity date, joining a list of property developers in the country that are reeling from a debt crisis, Reuters reported. The case underscores the impact of China Evergrande Group , which is struggling under $305 billion in debt, on the rest of the high-yield sector as liquidity dries up and sales slow. Earlier this week, Chinese developer Sinic Holdings said it would likely default on bonds worth $250 million. China Properties said it had failed to secure funds by Oct.
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China’s central bank broke its silence on the debt crisis at China Evergrande Group, saying risks to the financial system stemming from the developer’s struggles are “controllable” and unlikely to spread, Bloomberg News reported. Authorities and local governments are resolving the situation based on “market-oriented and rule-of-law principles,” People’s Bank of China official Zou Lan said at a news briefing on Friday. The central bank has asked lenders to keep credit to the real estate sector “stable and orderly,” said Zou, who is head of the financial market department.
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Turkey’s economy slid further into turmoil on Thursday after President Recep Tayyip Erdogan fired three top officials at the country’s central bank in a midnight decree that drove the country’s currency to record lows, the Wall Street Journal reported. The firings are Mr. Erdogan’s latest intervention at the bank after he fired three of its governors within two years, most recently installing a chief in March who agrees with his desire for lower interest rates. Mr.
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China faces tough trade-offs in dealing with the fallout from the financial troubles at property developer China Evergrande Group, the International Monetary Fund said, Bloomberg News reported. On the one hand, the country risks being seen as backing off from its economic deleveraging drive if it provides too much support to Evergrande and other affected companies, the Washington, D.C.-based lender said Tuesday in its semi-annual Financial Stability Report. On the other hand, it could spur more stress if it puts off arranging backing for the financial system.
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Shenzhen-based Baoneng Investment Group missed repayments on yet another debt to finance its unrealized automaking dream, underscoring the deepening capital crunch of the once-highflying private conglomerate, Nikkei Asia reported. Baoneng Motors Group, the auto unit of Baoneng, failed to pay interest on a 2.8 billion yuan ($434 million) trust loan to finance a new-energy vehicle (NEV) industrial park project in Guangzhou, state-backed China Railway Trust disclosed. Baoneng and its controlling shareholder, Yao Zhenhua, offered guarantees for the product.
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Money changers in Turkey will be required to record the identities of their clients under new rules issued after the lira hit another low this week, Bloomberg News reported. Previously, only clients whose transactions were worth $3,000 or more were asked to submit personal information. “This new practice aims only to reduce informality in the industry, increase the level of institutionalization and ensure compliance with international regulations,” the Treasury & Finance Ministry said in a statement on Wednesday.
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Debt-saddled Chinese property firms took heavy fire in bond markets on Tuesday, after the poster child of the sector's woes, Evergrande Group, missed its third round of bond payments in as many weeks and others warned of defaults, Reuters reported. A wave of developers face payment deadlines before the end of the year and with Evergrande's fate looking increasingly bleak, fears are mounting of a wider crisis.
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