Description
Default and renegotiation, a management option.
Abstract
This research has attempted to appraise loan default and renegotiation as a management option for banks in Nigeria. It proceeded with an overview of the loan default by stating the types of loans and their beneficiaries it looked at the criteria for the granting of loans to the public, the management of problem loans and the way out. Also, the elements of goods lending and renegotiation were discussed. The research did not fail to X-ray the measure put in place to recover the loans. Finally, it made recommendations from the conclusion and summary. In carrying out the research, both primary and secondary data were collected and sued the primary data were collected and used the primary data were colleted using oral interviews, while the secondary sources were derived from textbooks, journals magazines newspapers and seminars paper. Based on the findings, particular attention was paid to the effective loan recovery measure resulting from default and poor renegotiation, it is clear that not all those that received loans repaid the loan properly. There were default several causes with prevailing economic conditions, the act of goods, ecological problems, political favors etc. Several banks have taken actions to remedy to situation. The action includes court action, personal contracts, and compliance with the prudential guidelines as set out by CBN and enforced by the NDIC including insider abuse.
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