IMF How To Notes

How to Assess the Benefits of Nonperforming Loan Disposal in Sub-Saharan Africa Using a Simple Analytical Framework

Author/Editor:

Irina Bunda ; Zhangrui Wang

Publication Date:

June 8, 2021

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The coronavirus (COVID-19) crisis, which has hit financial systems across Africa, is likely to deteriorate banks’ balance sheets. The largest threat to banks pertains to their loan portfolios, since many borrowers have faced a sharp collapse in their income, and therefore have difficulty repaying their obligations as they come due. This could lead to a sharp increase in nonperforming loans (NPLs) in the short to medium term.

Series:

How-To Note No 2021/006

Subject:

Collateral Distressed assets Economic sectors Financial crises Financial institutions Financial sector policy and analysis Financial statements Loans Nonperforming loans Public financial management (PFM)

Notes:

Link to the template for this note

Frequency:

occasional