The Industrial and Commercial Bank of China (Asia) Ltd, the Hong Kong unit of China's biggest lender, said it will write down in full the HK$600 million (US$77.4 million) it has invested in bonds issued by three banks in Iceland.

The impairment loss will be taken this year and is the result of "the recent global financial turmoil," the company said in a statement to the Hong Kong exchange yesterday. Iceland last month secured an International Monetary Fund loan after its currency collapsed following a government takeover of the country's three biggest banks, which were unable to secure short-term funding. The loss won't have a "significant" impact on the bank's business and accounts for not more than 0.3 percent of total assets at the lender and its subsidiaries as of June 30, according to the ICBC (Asia).

(Shanghai Daily, November 13, 2008)