ERM Glossary: Renegotiated loan

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Renegotiated loans are loans and advances that have been renegotiated since first made. Loans may be renegotiated either as part of an ongoing customer relationship or in response to an adverse change in the circumstances of the borrower. In the latter case renegotiation can result in an extension of the due date of payment or repayment plans under which the bank offers a concessionary rate of interest to genuinely distressed borrowers.


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