In order to provide relief to the farmers affected due to severe natural calamities, the Government in DAC&FW has decided that interest subvention of 2% per annum will be made available to banks for first three years/entire period (subject to a maximum of five years) on the restructured loan
amount, and in all such cases the benefit of prompt repayment incentive at 3% per annum shall also be provided to the affected farmers.
"We will condone penalties after the member's full payment of the outstanding principal and interest of the restructured loan
within the approved term," Ignacio said.
Giving a breakdown of the current indebtedness, Banu explained that the N30.2billion includes N15,325,541,483.03 as the balance of the Federal Government restructured loan
, N4,002,948,667.07 as salary bail out, excess crude account loan outstanding of N9,324,613,607.52 and vehicle loan balance of N128,916,612.87.
The subvention is to be made available to banks for the first year on the restructured loan
"In case the member failed to pay the restructured loan
within the approved payment term, the outstanding loan delinquency shall be consolidated in Restructured Loan
2 , which incurs a higher interest rate of 10 percent per annum.
With the program, the agency condones penalties after the member has completed paying the restructured loan
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
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.