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 ?
The bank is believed to have non-performing debts of USD10bn.
The reporting system of the Al Etihad Credit Bureau will add value to the UAE's financial sector by enabling lending institutions to make informed decisions and it will encourage consumers to practice responsible debt management; this will in turn reduce credit losses from bad or non-performing debts.
This resulted in several board shuffles and three CEOs in several months, with the incumbent John Hourican remaining in office for just over a year now and implementing a drastic restructuring that includes downsizing, the sale of non-core assets at home and overseas, as well as stringent plans to recover non-performing debts, especially from major clients who have funds but refuse to pay.
Dikki said a part of the then non-performing debts owed to the Paris and London Clubs were mostly loans to these enterprises.
As Marwan Ahmad Lutfi, CEO of AECB, said, "Effectively run credit bureaux are internationally proven to support responsible lending, enhance payment behaviour and reduce credit losses from bad or non-performing debts.
Lutfi said that effectively run credit bureaus are internationally proven to support responsible lending, enhance payment behaviour and reduce credit losses from bad or non-performing debts.
However, commercial sources of project financing -- particularly local banks and capital markets -- will remain constrained until non-performing debts are restructured and in that context, export credit agencies are being called on to `fill the gap'.
Additional asset classes will include privately held non-performing debts such as credit card receivables, mortgages and utility liens.
Although BDC reported high levels of lending, much of the financial disbursement has been for ailing companies, and the corporation faces the prospect of being lumbered with non-performing debts and equity investments.
This resulted in several board shuffles and three CEOs in less than 14 months, with the incumbent John Hourican remaining in office for almost a year now and implementing a drastic restructuring that includes downsizing, the sale of non-core assets at home and overseas, as well as stringent plans to recover non-performing debts, especially from major clients who have funds but refuse to pay.
We are looking forward to the operational launch of the credit bureau at the end of Q1 2014, and strongly believe that it will add tremendous value by encouraging responsible lending and borrowing practices while enabling the banking sector to better manage risks on future credit losses from bad or non-performing debts.