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ERM Glossary: Contractual maturity

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Contractual maturity refers to the final payment date of a loan or other financial instrument, at which point all the remaining outstanding principal will be repaid and interest is due to be paid. For some loan types, especially those that are likely to be repaid early in part or in full, it may be contrasted with expected maturity date which might be taken as the average time to maturity bearing in mind expected repayments.

 


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