How to assess the benefits of nonperforming loan disposal in Sub-Saharan Africa using a simple analytical framework

prepared by Irina Bunda, Luc Eyraud, and Zhangrui Wang

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

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Year of publication:	June 2021
Authors:	Bunda, Irina ; Eyraud, Luc ; Wang, Zhangrui
Publisher:	Washington, DC, U.S.A. : International Monetary Fund, African Department
Subject:	Nonperforming loan disposal \| Excel template \| disposal strategy \| raise capital requirement \| loan portfolio \| management cost \| Nonperforming loans \| Loans \| Distressed assets \| Financial statements \| Collateral \| Sub-Saharan Africa \| Africa \| Kreditgeschäft \| Bank lending \| Zentralafrika \| Central Africa \| Kreditrisiko \| Credit risk \| Kreditsicherung \| Subsahara-Afrika \| Notleidender Kredit \| Non-performing loan \| Kredit \| Credit \| Portfolio-Management \| Portfolio selection