IMF How To Notes

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

By Irina Bunda, Zhangrui Wang

June 8, 2021

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Irina Bunda, and Zhangrui Wang. How to Assess the Benefits of Nonperforming Loan Disposal in Sub-Saharan Africa Using a Simple Analytical Framework, (USA: International Monetary Fund, 2021) accessed November 23, 2024

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.

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

Keywords: Africa, Collateral, Disposal strategy, Distressed assets, Excel template, Financial statements, Loan portfolio, Loans, Management cost, Nonperforming loan disposal, Nonperforming loans, Raise capital requirement, Sub-Saharan Africa

Publication Details

  • Pages:

    22

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    How-To Note No 2021/006

  • Stock No:

    HTNEA2021006

  • ISBN:

    9781513583099

  • ISSN:

    2522-7912

Notes