Non Performing Loan

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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 ?
Financial institutions are restricting lending because they are writing down growing amounts of nonperforming debts and suffering from appraisal losses on their shareholdings.
The company currently focuses on collecting nonperforming debts transferred from financial institutions, guarantee companies, and leasing companies, for which the collateral has been liquidated.
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.