Non Performing Loan

(redirected from Nonperforming Debt)

Non Performing Loan

A loan in or near default. According to the International Monetary Fund, a non-performing loan is any loan in which: interest and principal payments are more than 90 days overdue; or more than 90 days' worth of interest has been refinanced, capitalized, or delayed by agreement; or payments are less than 90 days overdue but are no longer anticipated. Another definition of a non-performing loan is one in which the maturity date has passed but at least part of the loan is still outstanding. The specific definition is dependent upon the loan's particular terms.
References in periodicals archive ?
The mandatory minimum for bad-loan provisions is currently set at 150 percent of existing nonperforming debt and the government could cut it to relieve some pressure on banks.
As hundreds of New Jersey's HUD, income- and age-restricted multi-family properties continue to operate in the face of escalating nonperforming debt and exponentially accumulating interest, penalties and other fees, the brokerage specialists at Gebroe- Hammer Associates are negotiating trades of these over-leveraged-properties.
Approximately two-thirds of the loans in IBRA's portfolio were classified as nonperforming debt.
1 trillion yuan in nonperforming debt off SOE books in the past year and heavy stimulus spending have given the state sector what some call a very artificial boost.
It will move to purchase nonperforming debt over a period of two years, and provide support to struggling companies that meet established criteria that demonstrates an ability to reorganize themselves within three years or less.
Ironically, though banks are re-entering the lending arena, their inventory of nonperforming debt has created new opportunities for private lenders.
83 billion baht in nonperforming debt, the bank said.
Financial institutions are restricting lending because they are writing down growing amounts of nonperforming debts and suffering from appraisal losses on their shareholdings.
First, with the help of strict government oversight, banks' balance sheets must be re-appraised in line with their true content, after which nonperforming debts must be cleared away quickly and effectively.