New Delhi, Oct. 18 -- Financially weak companies that have been unable to generate enough earnings to cover their interest payments account for 21.4 per cent of outstanding corporate debt across 10 major Asian economies, including India, according to the International Monetary Fund (IMF).

The findings, highlighted in the IMF's October 2026 Global Financial Stability Report titled "Resilience, Risk, and Transformation", point to growing risks for banks and the wider financial system as lending to financially distressed companies continues despite their inability to service debt.

In a special analysis titled "Corporate Zombies Are Thwarting Debt Deleveraging", the IMF stated, "This rising share of corporate debt is increasingly concentrat...