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Theoretical and Applied Economics
No. 11 / 2009 (540)

Banking Restructuring Techniques in the Economical Crisis Context

Vasile Dedu
The Bucharest Academy of Economic Studies
Sorin Adrian Lazarescu
The Bucharest Academy of Economic Studies
Dan Costin Nitescu
The Bucharest Academy of Economic Studies

Abstract. Banking restructuring regained leading place in commercial banking activities following ongoing crisis. Many debtors are facing serious trouble in normal debt repayment due to increasing number and volume of non performing loans in banks’ portfolios. In order to deal with these issues and to secure existing exposures banks use restructuring techniques like payment rescheduling, debt-equity swap and write-offs to ease debtors debts and to help viable businesses to successfully survive recession.

Keywords: restructuring; crisis; non performing loans; debt; restructuring principles; early distress indicators.

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