In its 'Credit Outlook' issued twice weekly, the ratings agency noted that banks' restructured loan
balance declined to its lowest level since December 2014.
Moody's noted that banks' restructured loan
balance declined to its lowest level since December 2014 and acknowledged that the lower balance reflects the larger amount of restructured loans
that became performing and exited the restructured loan
pool versus newly restructured loans
entering the pool.
We hope that members will be faithful in paying their restructured loan
amortizations to avoid further penalties.
The analysis of the potential impact of losses from the restructured loan
portfolio on the capital of credit institutions, considering that an adverse shock would lead to the need to build additional adjustments for depreciation strengthens the image of an adequate level of capitalization banks, the credit institutions being able to absorb such unfavorable shocks.
29, 2014 of a 'standstill' on all payments due under existing restructured loan
Reappraised in June 2010 the real estate value was much less than the original value obtained in 2006, therefore the restructured loan
was written down to reflect the current appraised value.
The restructured loan
has maturity rate extended to March 2013 and an interest rate at 375 basis points over LIBOR.
This assistance model provides that the state issues guarantees to banks if the borrower with a restructured loan
gets into trouble again; the state will continue the monthly payments in the borrower's place, until completion of the program, or until the borrower becomes solvent again.
115 applies to a loan that was restructured in a troubled debt restructuring involving a modification of terms if the restructured loan
meets the FASB's definition of a security in paragraph 137 of the statement.
When there is an impairment but not a restructured loan
, the impaired loan is not measured at a market rate of interest but at the same discount rate used at the inception of the loan.
The appropriate accounting would incorporate carrying forward only the present value of future receipts, with the lender recognizing a loss equal to the decrease in the present value of the restructured loan
The restructured loan
has been extended to 2020 at the original rate of interest with no impact on the principal payment," the spokesperson said in an emailed statement obtained by Gulf News.