Dewan Housing Finance Corp., an Indian mortgage lender that has delayed payment on some of its obligations, plans to ask banks to lend 15 billion rupees ($217 million) every month to help revive the company, a person with knowledge of the proposal said, Bloomberg News reported. The financier, which has about 800 billion rupees of obligations, will submit the resolution plan on July 10 to a consortium of seven lenders led by state-run Union Bank of India, the person said, asking not to be identified as the discussions are private.
The erosion of Turkey’s creditworthiness is a warning signal for South Africa, and investors are ignoring it, according to Informa Financial Markets. The cost of insuring the country’s debt against non-payment dropped to the lowest in 13 months this week, even as a funding crisis at Eskom Holdings SOC Ltd. strains government finances while the economy struggles to recover from the worst quarterly contraction since the 2008 financial crisis, Bloomberg News reported.
Closing Chinese outbound deals already was a difficult task. Growing trade tensions globally has made it even tougher, Bloomberg News reported. At $35 billion, the volume of Chinese outbound mergers and acquisitions is the lowest tally for the first six months of the year since 2013, according to data compiled by Bloomberg. The total represents a 75% drop from the peak of such M&A activity in the first half of 2016, when China National Chemical Corp. agreed to buy Swiss agrochemical maker Syngenta AG for $43 billion. Of the first-half total, only $6.8 billion was from U.S.
India ordered an investigation on Thursday into alleged mismanagement of funds at Jet Airways , which halted operations in April after running out of cash, Reuters reported. The Ministry of Corporate Affairs has ordered India’s Serious Fraud Investigation Office (SFIO) to carry out the investigation, a government order seen by Reuters showed. The order refers to alleged siphoning of funds and unspecified financial irregularities at Jet Airways, which was once India’s largest private airline, but did not include details on the allegations or name any individuals.
India’s state-owned banks had classified 1.50 trillion rupees ($21.76 billion) worth of loans as “wilful defaults” in 2018-19, with the biggest lender State Bank of India accounting for nearly a third, the finance minister said in the parliament, Reuters reported. Under Indian law, wilful defaulters are classified as firms or individuals who own large businesses and deliberately avoid repayments.
Turkey has announced plans to sell debt in the international bond market for the first time since March as the country seeks to take advantage of a thaw in investor sentiment and a sharp drop in yields across developed markets, the Financial Times reported. The country has hired BNP Paribas, Citigroup and HSBC to sell a dollar-denominated bond that will mature in 2024, the Ministry of Treasury and Finance said. It will mark the fourth time this year the country has sold paper in currencies other than the lira.
Moody’s Investors Service’s India unit has put its chief on leave amid a probe into a controversial rating decision, in the latest sign of trouble in the nation’s credit evaluation industry, Bloomberg News reported. ICRA Ltd.’s board has decided to place Chief Executive Officer Naresh Takkar on leave, the company said in an exchange filing Monday evening. The rater is examining concerns raised in a whistle-blower complaint, sent to it by the regulator, that its executives interfered to guarantee top ratings for a financier that plunged to default just two months later.
The Indian government is considering giving more powers to the central bank to regulate the struggling shadow banking sector, Finance Minister Nirmala Sitharaman informed the Parliament on Monday, the International New York Times reported on a Reuters story. The government does not have any plans to infuse funds in privately-held shadow banks, she said in a written reply. "Government has received a proposal from RBI to strengthen RBI's regulatory and supervisory powers under the Reserve Bank of India Act, 1934, and the same is under consideration," Sitharaman said.
China’s banking regulator plans to tighten rules on so-called cash-management products, according to people familiar with the matter, impacting an estimated $2 trillion worth of the investments, Bloomberg News reported. The China Banking and Insurance Regulatory Commission aims to treat CMPs similar to money-market funds by imposing stricter rules on pricing and restricting where and for how long the inflows can be invested, the people said, asking not to be identified as the deliberations are private.
After a year of fending off an International Monetary Fund bailout, Pakistan’s Prime Minister Imran Khan wants to win one this week with a plan to jolt his economy into shape—potentially at the expense of the agenda that helped him get elected, The Wall Street Journal reported. The IMF board is due to meet Wednesday in Washington to consider whether Pakistan is undertaking enough tough action to get a loan of $6 billion over three years. Mr.