Posted To:	Treatment of Nonperforming Loans  | View Thread
Subject:	RE: Comments on Nonperforming Loans and Interest Accrual
Posted By:	Inwon Song on 6/16/2003 5:29:05 PM
The note indicates in the third paragraph that the draft FSI Guide requires the payments of both interest and principal be past due for an adequate definition of NPLs (in relation to paragraph 4.80 of the "Compilation Guide on Financial Soundness Indicators.") However, international best practices would require that if either principal or interest is overdue for 90 days, such a loan be considered to be nonperforming. This practice is already well established in many countries. In this regard, the related paragraph of the "Compilation Guide on Financial Soundness Indicators." should be revised. Inwon Song
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