Headlines

Korea’s total debt, combining those in private and public sectors, has reached 3 quadrillion won (about $2.75 trillion) in the second quarter, fanning worries that the country is increasingly exposed to a credit crisis, The Korea Times reported. According to the Bank of Korea (BOK) and the financial industry, the nation’s total debt stood at 2.96 quadrillion won in June, accounting for 233.8 percent of its nominal gross domestic product (GDP). The combined debt increased by 103 trillion won, or 3.6 percent for six months since December.

German regulator BaFin has asked Deutsche Bank AG and at least 14 other banks to draw up emergency blueprints for restructuring during a crisis, Reuters reported. The plans form part of a global effort by regulators to avoid multi-billion taxpayer bailouts of distressed lenders and prevent any one lender from causing a systemic crisis for the entire financial system. "The aim is to get banks and regulators thinking about emergency plans," BaFin executive Raimund Roeseler said on Friday.

Mortgage misery will be eased for thousands next month, but only if the banks play ball, the Irish Times reported in a commentary. This week, the most important piece of legislation to come from this Government reaches report stage in Dail Eireann. It will then do one more lap of the Oireachtas before being passed into law next month. Minister Shatter's intention for the Personal Insolvency Bill is admirable, but its success requires a fundamental shift from the banks in how they deal with borrowers. The Bill provides three legal mechanisms.

Saudi construction company Mohammed al-Mojil Group, due to hold an emergency meeting on Monday to discuss breaking up, on Saturday reported a third quarter loss of 33.8 million riyals ($9 million) as project revenue faltered, Reuters reported. The contractor said in September its liabilities exceeded its assets and shareholders were left with a deficit of 279.8 million riyals after it ran into problems on some large contracts. Accumulated losses in September also exceeded 75 percent of MMG's capital, forcing it to call an emergency meeting to discuss whether the company should be dissolved.

Greece's negotiations with international lenders for desperately needed rescue funds some two weeks before bankruptcy looms are stuck, the IMF said Thursday, sending Greek stocks plunging, The Sydney Morning Herald reported. The International Monetary Fund said the talks were stalled over the conditions for financing Greece as it seeks a two-year extension to meet fiscal goals.

Dana Gas, a Sharjah-based energy company with operations in the United Arab Emirates, Iraq and Egypt, said Thursday it failed to pay back a $920 million Islamic bond, or sukuk, that came due on Wednesday, The Wall Street Journal reported. The company is in discussions with holders of the debt to amend the terms of the sukuk and extend its maturity, according to a statement posted on the Abu Dhabi bourse website. Dana has a three-day grace period before it can officially be declared in default, according to a person familiar with the matter.

UK personal insolvency figures are predicted to fall further tomorrow, but experts warned the recent improving trend is likely to hit a turning point soon, with large numbers of people still living on the brink, The Telegraph reported. Charles Turner, vice-president of the Insolvency Practitioners Association (IPA), expects personal insolvencies to fall further from the four-year low set in the second quarter of this year to around 26,600 in official figures for the third quarter published tomorrow.

British electricals retailer Comet is set to enter into administration next week, the latest household name to fall by the wayside in the consumer downturn. Directors of the struggling company, which employs 6,500 staff in 240 stores, filed a notice on Thursday to a British court, a spokesman confirmed on Thursday. "Comet Group Limited can confirm that it has taken steps to seek the protection of the court with a view to the company entering into administration during week commencing Nov 5," the spokesman said.

The Hong Kong government’s toughest efforts yet to curb a growing asset bubble in the city’s property market probably won’t be the last as record-low mortgage rates drive demand for the world’s priciest homes, Bloomberg reported. Policy makers last month imposed an extra 15 percent tax on all home purchases by companies and non-permanent residents, adding to steps to boost the supply of housing and tighten lending as an influx of buyers from other parts of China underpin soaring prices. Untouched is the major stimulant fuelling prices: borrowing costs tied to the U.S.

Lending to Irish households and businesses fell in the year to the end of September and the European Central Bank has said it expects access to funds to tighten further in the coming months, the Irish Times reported. Figures released by the Central Bank of Ireland yesterday show that loans to Irish households were 3.7 per cent lower in the 12 months to September 30th. The monthly rate of decline was unchanged in September, with an €88 million fall in lending during the month.