The three principles of restructuring loans are:

The principle of effective restructuring, loan restructuring can have a positive effect on reducing credit risks and reducing loan losses, standardized operating principles, loan restructuring must strictly follow the regulations According to the conditions and procedures for operation and approval, and the principle of appropriate leniency, loan restructuring can implement certain leniency within the scope permitted by the policy to facilitate the recovery of the loan.

The full name of restructured loan is restructured loan, which refers to a loan in which the bank adjusts the repayment terms of the loan contract due to the deterioration of the borrower's financial condition or inability to repay. The restructuring measures that banks usually take to deal with problem loans include the following: loan extension, borrowing new money to repay the old one, repaying the old one and borrowing the new one, reducing or fully reducing interest and penalties, reducing or reducing part of the principal, debt-for-equity swaps, loan-in-things, and additional guarantees. products, re-stipulate the repayment method and the amount of each repayment, etc.

Restructured loan is actually a special form of credit and debt restructuring between the lending bank and the borrower. It means that due to the deterioration of the borrower's financial situation and the inability to repay the principal and interest of the loan when due, the lending bank agrees with the borrower in accordance with the agreement. The act of making partial concessions of rights and interests and agreeing to modify the repayment conditions based on an agreement or a court ruling.

Restructured loans have four main characteristics. First, the subject of the restructured loan must be the lending bank, the creditor, and the borrower, the debtor. Second, the repayment conditions must be modified based on the original loan contract. Third, it must enhance the borrower's willingness to repay and promise to repay all or part of the debt. At the same time, the lending bank must make equity concessions at the expense of reducing or exempting part of the debt, delaying the realization of the creditor's rights, or changing the method of realizing the creditor's rights. Fourth, it must be conducive to strengthening the The borrower's operating capabilities and development potential are conducive to safeguarding the creditor's rights of the lending bank and reducing financial risks. It is also conducive to maintaining national economic and financial security and maintaining social stability.

Legal Basis

"Guiding Principles for Loan Risk Classification"

Article 7 Loans that need to be restructured should be classified at least as substandard; restructured loans ( (Referred to as restructured loans) If it is still overdue, or the borrower is still unable to repay the loan, it should at least be classified as doubtful.

Restructured loans refer to loans in which the bank adjusts the repayment terms of the loan contract due to the deterioration of the borrower's financial situation or inability to repay.

If the restructured loan has other more serious characteristics, further adjustments may be made with reference to Articles 4 and 5 of these guiding principles.