Latest news with #defaults
Bloomberg
02-08-2025
- Business
- Bloomberg
The Fight Over Venezuela's Most Valuable Asset Is Heating Up
Welcome to The Brink. I'm Nicolle Yapur, a reporter in Bogota, where I'm following the auction for PDVSA's most valuable foreign asset. We also have news on the second-quarter's surge in defaults led by distressed private equity-backed firms bought with floating-rate loans before the Fed's hiking cycle began. Follow this link to subscribe. Send us feedback and tips at debtnews@ or DM. A legal fight over a unique bond issued by Venezuela 's state-owned oil company is heating up.
Malay Mail
15-07-2025
- Business
- Malay Mail
COUNTRY & SECTOR RISKS - June 2025 The great leap backwards: 23 sectors and 4 countries downgraded
US tariffs, even if paused or reduced, have already reached historically high levels Nearly 80% of advanced economies recorded an increase in defaults in the first quarter of 2025 compared to 2024 The metal sector is the most affected, and traditional industrial sectors (automotive and chemicals) are under pressure. Other sectors that have been downgraded include: In the United States, information and communication technologies and retail In China, textiles and clothing, impacted by customs duties. The US economy faces two uncertainties: the size of customs tariffs and how they will be absorbed by the economy. Despite declining consumer confidence, employment is holding up and the contraction in GDP (-0.2% in Q1) is a reflection of preventive stockpiling by businesses. In Europe, Germany saw a minor uptick in growth in the first quarter, France remains sluggish, Italy could run out of steam, while Spain continues to benefit from tourism and European funds to maintain momentum. HONG KONG SAR / SHANGHAI & BEIJING, CHINA / TAIPEI, TAIWAN / SYDNEY, AUSTRALIA / TOKYO, JAPAN - Media OutReach Newswire - 15 July 2025 - In a context of unprecedented geopolitical and trade uncertainty, the global economy is navigating between an expected slowdown and escalation risks. Trump's tariff decisions and tensions in the Middle East are reshaping an unpredictable economic landscape for this environment, and in view of the measures already in place, Coface has downgraded 23 sectors and 4 global economic outlook is more uncertain than ever, as it depends heavily on (geo)political events and the trade decisions of the US President. The reintroduction of tariffs after the 90-day suspension periods (9 July for the rest of the world, 12 August for China) could have a significant impact on global growth. A marked slowdown is expected (growth in 2025 andin 2026), with mainly downside risks – growth ofcannot be ruled out if the geopolitical and trade situations same uncertainty naturally surrounds inflation, whose current stability could be jeopardised. It could reachin the US by the end of 2025, with broader upside risks subsisting in the event of higher energy prices. The major central banks are likely to respond with a continued cautious stance. However, if US inflation is brought under control, the Fed could cut rates as early as the autumn of 2025. The ECB has announced that it will maintain its rate-cutting policy, but added that it is close to its terminal is all the greater in Europe as long-delayed fiscal consolidation policies could finally begin to be implemented, while Germany is engaged in a stimulus programme whose scale is difficult to assess at this Israel-Iran conflict has reigniting fears over oil. A disruption or even a blockade of the Strait of Hormuz (the passage forof global supply) could push prices aboveper barrel. Excluding this geopolitical environment, however, fundamentals point to a fall in prices on back of production increases in non-OPEC+ countries, demand weakened by trade tensions and the reintroduction of volumes by OPEC+ members (2.2 million barrels per day). Barring a major crisis, prices should continue to be extremely volatile but remain within a range of $65 to $75 per China, the temporary truce on tariffs has led to a surge in exports, but the outlook is fragile. India, despite generating growth of more thanin the first quarter, is seeing consumption slow and its fiscal headroom Latin America, Mexico is bearing the brunt of trade uncertainty, with zero growth expected in 2025. Brazil, after a rebound in agriculture following El Niño-induced losses, is expected to contract on back of restrictive monetary policy (key rate raised to). In Argentina, the momentum generated by Mileinomics is strong and, despite its low foreign exchange reserves, could post GDP growth ofandThe metallurgy sector is experiencing a major crisis, having recorded global steel overcapacity ofin 2024, which representsof global production. The unfavourable macroeconomic environment, energy tensions and new steel tariffs are exacerbating the situation for steelmakers, particularly in Canada, Mexico and its exports headed for the US, Canada is one of the countries most exposed to the trade war. Growth has slowed significantly after a surge at the end of 2024. Consumption is falling, investment is weakening and unemployment stands at, its highest level since boosted by the menace of customs duties, contracted sharply in April. The, which were hit by tariff increases of up to 50%, have been particularly affected. The upcoming revision of the USMCA agreement, which is expected to be brought forward to the end of 2025, could further exacerbate the country's economic the full study here Hashtag: #Coface The issuer is solely responsible for the content of this announcement. COFACE: FOR TRADE As a global leading player in trade credit risk management for almost 80 years, Coface helps companies grow and navigate in an uncertain and volatile environment. Whatever their size, location or sector, Coface provides 100,000 clients across some 200 markets. with a full range of solutions: Trade Credit Insurance, Business Information, Debt Collection, Single Risk insurance, Surety Bonds, Factoring. Every day, Coface leverages its unique expertise and cutting-edge technology to make trade happen, in both domestic and export markets. In 2024, Coface employed +5,200 people and recorded a turnover of ~€1.845 billion.
Yahoo
11-07-2025
- Business
- Yahoo
Chinese banks stumble on Beijing's consumer lending push
BEIJING (Reuters) -Chinese banks are struggling to comply with new Beijing guidelines to boost consumer credit as they reel from a surge of defaults on personal loans and have a hard time finding households in good financial shape that want to borrow. Since March, financial regulators have issued multiple directives urging banks to offer more, and cheaper, loans to spur consumption, as part of broader efforts to counter the impact of the trade war with the United States. This prompted banks to market personal loans at record low interest rates below 3% initially, before raising them back amid concerns over shrinking profit margins. Loan managers and bank executives told Reuters they are struggling to raise consumer lending, citing subdued demand, as well as concerns over an already rapidly growing pile of bad household debt and uncertainty over their clients' incomes. Recent wage cuts in the financial industry, manufacturing and the state sector have further dented households' financial health while higher U.S. tariffs are fuelling concerns over jobs and income stability. "It's very difficult to find borrowers for consumer loans," said a branch head at a state-owned bank, requesting anonymity due to the sensitivity of the topic. "Banks are caught between meeting lending targets and controlling bad loans." "If defaults rise, branch officers face penalties. Many loan officers borrow from each other's banks to meet lending quotas." The People's Bank of China and the National Financial Regulatory Administration did not immediately respond to requests for comment. Consumer loans grew 6.1% in the first quarter, slower than the 8.7% in the same period of 2024 and the 11% in January-March 2023, according to the central bank. Data for the second quarter is expected in coming weeks. The overall NPL ratio of China's commercial banks was 1.51% as of the end of March, remaining steady compared to 1.50% at the end of 2024, official data showed. Smaller rural commercial banks posted a higher NPL ratio of 2.86% in the first quarter compared to 1.22% at major state banks. Official data doesn't disclose the NPL ratio of overall consumer loans, but the bank executives and loan managers told Reuters the defaults on personal lending have risen sharply this year. BAD LOANS PILE UPThe banks' struggles bode ill for official efforts to boost lending to consumers, seen as a faster alternative to raising household incomes. The latter would require indebted local governments spend more on social welfare and civil servants pay, among other measures. Any debt-driven jolt to consumption is likely to prove "transitory", said Lynn Song, chief Greater China economist at ING. "Income growth-driven consumption would be strongly preferable in terms of achieving a more sustainable recovery," Song said, adding that was a more difficult task for authorities. Economists aren't concerned about absolute household debt levels, which are about 60% of economic output in China, compared with about 70% in the U.S. and more than 90% in South Korea. But they worry about how quickly non-performing loans (NPLs) in the consumer debt sector have been rising. In the first quarter of this year, Chinese banks put up 74.27 billion yuan ($10.34 billion) of NPLs for sale, a 190.5% increase from the same period of 2024, data from the Banking Credit Asset Registration and Transfer Center show. About 70% of them were personal loans. "We have a growing pile of bad loans. For many clients who can't repay, all we can do is negotiate extensions," said a loan officer at a major state-owned bank. The officer said his bank prioritised writing off NPLs over issuing new loans. The Industrial Commercial Bank of China, the world's largest commercial bank by assets, said its consumer NPL ratio rose to 2.39% at the end of 2024, from 1.34% a year earlier. Smaller, regional lenders are faring much worse. Bohai Bank's consumer NPL ratio jumped to 12.37% in 2024 from 4.44% the previous year. Harbin Bank's rose to 5.51% from 3.94%. "Clients are in poor operating conditions due to the tariffs war and unable to repay their loans," said a regional bank manager. Another key challenge for banks is that consumers don't want to borrow. A central bank survey of 20,000 households showed that 61.4% intend to boost savings — an increase of almost 20 percentage points from pre-pandemic levels. "The fundamental issue is that income growth is slowing and households are anxious, so they are restraining their spending and borrowing," said Christopher Beddor, deputy director of China research at Gavekal Dragonomics. "It's not that they can't get a cheap loan." ($1 = 7.1770 Chinese yuan) Sign in to access your portfolio
Reuters
11-07-2025
- Business
- Reuters
Chinese banks stumble on Beijing's consumer lending push
BEIJING, July 11 (Reuters) - Chinese banks are struggling to comply with new Beijing guidelines to boost consumer credit as they reel from a surge of defaults on personal loans and have a hard time finding households in good financial shape that want to borrow. Since March, financial regulators have issued multiple directives urging banks to offer more, and cheaper, loans to spur consumption, as part of broader efforts to counter the impact of the trade war with the United States. This prompted banks to market personal loans at record low interest rates below 3% initially, before raising them back amid concerns over shrinking profit margins. Loan managers and bank executives told Reuters they are struggling to raise consumer lending, citing subdued demand, as well as concerns over an already rapidly growing pile of bad household debt and uncertainty over their clients' incomes. Recent wage cuts in the financial industry, manufacturing and the state sector have further dented households' financial health while higher U.S. tariffs are fuelling concerns over jobs and income stability. "It's very difficult to find borrowers for consumer loans," said a branch head at a state-owned bank, requesting anonymity due to the sensitivity of the topic. "Banks are caught between meeting lending targets and controlling bad loans." "If defaults rise, branch officers face penalties. Many loan officers borrow from each other's banks to meet lending quotas." The People's Bank of China and the National Financial Regulatory Administration did not immediately respond to requests for comment. Consumer loans grew 6.1% in the first quarter, slower than the 8.7% in the same period of 2024 and the 11% in January-March 2023, according to the central bank. Data for the second quarter is expected in coming weeks. The overall NPL ratio of China's commercial banks was 1.51% as of the end of March, remaining steady compared to 1.50% at the end of 2024, official data showed. Smaller rural commercial banks posted a higher NPL ratio of 2.86% in the first quarter compared to 1.22% at major state banks. Official data doesn't disclose the NPL ratio of overall consumer loans, but the bank executives and loan managers told Reuters the defaults on personal lending have risen sharply this year. BAD LOANS PILE UP The banks' struggles bode ill for official efforts to boost lending to consumers, seen as a faster alternative to raising household incomes. The latter would require indebted local governments spend more on social welfare and civil servants pay, among other measures. Any debt-driven jolt to consumption is likely to prove "transitory", said Lynn Song, chief Greater China economist at ING. "Income growth-driven consumption would be strongly preferable in terms of achieving a more sustainable recovery," Song said, adding that was a more difficult task for authorities. Economists aren't concerned about absolute household debt levels, which are about 60% of economic output in China, compared with about 70% in the U.S. and more than 90% in South Korea. But they worry about how quickly non-performing loans (NPLs) in the consumer debt sector have been rising. In the first quarter of this year, Chinese banks put up 74.27 billion yuan ($10.34 billion) of NPLs for sale, a 190.5% increase from the same period of 2024, data from the Banking Credit Asset Registration and Transfer Center show. About 70% of them were personal loans. "We have a growing pile of bad loans. For many clients who can't repay, all we can do is negotiate extensions," said a loan officer at a major state-owned bank. The officer said his bank prioritised writing off NPLs over issuing new loans. The Industrial Commercial Bank of China ( opens new tab, the world's largest commercial bank by assets, said its consumer NPL ratio rose to 2.39% at the end of 2024, from 1.34% a year earlier. Smaller, regional lenders are faring much worse. Bohai Bank's consumer NPL ratio jumped to 12.37% in 2024 from 4.44% the previous year. Harbin Bank's rose to 5.51% from 3.94%. "Clients are in poor operating conditions due to the tariffs war and unable to repay their loans," said a regional bank manager. Another key challenge for banks is that consumers don't want to borrow. A central bank survey of 20,000 households showed that 61.4% intend to boost savings — an increase of almost 20 percentage points from pre-pandemic levels. "The fundamental issue is that income growth is slowing and households are anxious, so they are restraining their spending and borrowing," said Christopher Beddor, deputy director of China research at Gavekal Dragonomics. "It's not that they can't get a cheap loan." ($1 = 7.1770 Chinese yuan)
Yahoo
11-07-2025
- Business
- Yahoo
Chinese banks stumble on Beijing's consumer lending push
BEIJING (Reuters) -Chinese banks are struggling to comply with new Beijing guidelines to boost consumer credit as they reel from a surge of defaults on personal loans and have a hard time finding households in good financial shape that want to borrow. Since March, financial regulators have issued multiple directives urging banks to offer more, and cheaper, loans to spur consumption, as part of broader efforts to counter the impact of the trade war with the United States. This prompted banks to market personal loans at record low interest rates below 3% initially, before raising them back amid concerns over shrinking profit margins. Loan managers and bank executives told Reuters they are struggling to raise consumer lending, citing subdued demand, as well as concerns over an already rapidly growing pile of bad household debt and uncertainty over their clients' incomes. Recent wage cuts in the financial industry, manufacturing and the state sector have further dented households' financial health while higher U.S. tariffs are fuelling concerns over jobs and income stability. "It's very difficult to find borrowers for consumer loans," said a branch head at a state-owned bank, requesting anonymity due to the sensitivity of the topic. "Banks are caught between meeting lending targets and controlling bad loans." "If defaults rise, branch officers face penalties. Many loan officers borrow from each other's banks to meet lending quotas." The People's Bank of China and the National Financial Regulatory Administration did not immediately respond to requests for comment. Consumer loans grew 6.1% in the first quarter, slower than the 8.7% in the same period of 2024 and the 11% in January-March 2023, according to the central bank. Data for the second quarter is expected in coming weeks. The overall NPL ratio of China's commercial banks was 1.51% as of the end of March, remaining steady compared to 1.50% at the end of 2024, official data showed. Smaller rural commercial banks posted a higher NPL ratio of 2.86% in the first quarter compared to 1.22% at major state banks. Official data doesn't disclose the NPL ratio of overall consumer loans, but the bank executives and loan managers told Reuters the defaults on personal lending have risen sharply this year. BAD LOANS PILE UPThe banks' struggles bode ill for official efforts to boost lending to consumers, seen as a faster alternative to raising household incomes. The latter would require indebted local governments spend more on social welfare and civil servants pay, among other measures. Any debt-driven jolt to consumption is likely to prove "transitory", said Lynn Song, chief Greater China economist at ING. "Income growth-driven consumption would be strongly preferable in terms of achieving a more sustainable recovery," Song said, adding that was a more difficult task for authorities. Economists aren't concerned about absolute household debt levels, which are about 60% of economic output in China, compared with about 70% in the U.S. and more than 90% in South Korea. But they worry about how quickly non-performing loans (NPLs) in the consumer debt sector have been rising. In the first quarter of this year, Chinese banks put up 74.27 billion yuan ($10.34 billion) of NPLs for sale, a 190.5% increase from the same period of 2024, data from the Banking Credit Asset Registration and Transfer Center show. About 70% of them were personal loans. "We have a growing pile of bad loans. For many clients who can't repay, all we can do is negotiate extensions," said a loan officer at a major state-owned bank. The officer said his bank prioritised writing off NPLs over issuing new loans. The Industrial Commercial Bank of China, the world's largest commercial bank by assets, said its consumer NPL ratio rose to 2.39% at the end of 2024, from 1.34% a year earlier. Smaller, regional lenders are faring much worse. Bohai Bank's consumer NPL ratio jumped to 12.37% in 2024 from 4.44% the previous year. Harbin Bank's rose to 5.51% from 3.94%. "Clients are in poor operating conditions due to the tariffs war and unable to repay their loans," said a regional bank manager. Another key challenge for banks is that consumers don't want to borrow. A central bank survey of 20,000 households showed that 61.4% intend to boost savings — an increase of almost 20 percentage points from pre-pandemic levels. "The fundamental issue is that income growth is slowing and households are anxious, so they are restraining their spending and borrowing," said Christopher Beddor, deputy director of China research at Gavekal Dragonomics. "It's not that they can't get a cheap loan." ($1 = 7.1770 Chinese yuan)
