This is the second bad debt
transaction completed by BoC after Helix, which concerned the sale of loans worth e1/42.8bn, e1/42.7bn being NPEs.
For this reason, the IRS extends the statute of limitation for claiming a credit or refund for bad debts
to seven years, rather than the usual three years (Sec.
"NBE applies various techniques to reduce the bad debts
portfolio including; debt rescheduling, increasing the bank's stake in defaulting companies' capital and floating defaulting clients," Abou El-Fotouh said.
Bank loans become "bad debts
" or are defined as "non-performing" when these remain unpaid for a specified period of time.
Brian Kavanagh: bad debts
a serious industry problem
Analysts said the decline in bad debts
was good news but they would rather see profits driven by improvements in revenue.
Lloyds said it saw a significant slowdown in the level of bad debt
charges as improving economic conditions help borrowers on to a firmer footing.
Severn Trent said it had "worked hard" to hold bad debt
levels at 2.3 per cent of turnover and said it was on track to deliver an extra pounds 5 million of cost savings for the year.
in the sector have reached historic highs, standing at nearly 6% of outstanding balances.
It also confirmed a move away from lending products in the face of the rising bad debts
, with a focus instead on savings, current accounts, life insurance and pensions products.
BARCLAYS Bank is on course to make record profits of pounds 7bn this year - despite soaring bad debts
at its credit card business.
THE amount of money set aside by Barclays to cover bad debts
rocketed by 50 per cent in the first half of the year, it emerged yesterday.