5 / What is bad debt?
Debt is bad or doubtful debts subprime loans, could overdue and suspicious about the ability to repay and the ability of creditors to recover capital. (The debts of the groups 3, 4 and 5)
§ Group 1 (Standard debt) include:
- term debts that credit institutions assess as to afford full recovery of principal and interest on time
§ Group 2 (Special Mention) includes:
- Debts overdue less than 90 days
- Liabilities rescheduled repayment of debt under the term limits were restructured
§ Group 3 (under standard debt) include:
- Debts which are overdue from 90 to 180 days;
- Debts restructured repayment period less than 90 days past due restructured period;
§ Group 4 ( Doubtful) includes:
- Debts which are overdue from 181 days to 360 days;
- Debts restructured repayment term, which are overdue from 90 days to 180 days the time limit for the restructured;
§ Group 5 ( irrecoverable debts) includes:
- Debts overdue more than 360 days;
- The Government debt rescheduling process.
- The restructured debt repayment period overdue more than 180 days within limit has been restructured.
The average NPL ratio of less than 3% of the market, the bank Eximbank, the bad debt within acceptable levels.
"Delinquency" is a debt which part or all of the principal and / or interest is overdue.
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