Introduction to Loan Restructuring

When a customer is not able to repay the debts, due to the inability to comply with the initially agreed repayment terms and conditions with the bank, the customer, or a debt management advisor (on behalf of the customer) approaches the court with a request for restructuring the existing loans. Once this restructuring is approved by the court, the restructuring activities take place (for example, interest can be suppressed). The customers can make repayments based on the restructured terms and conditions agreed upon between the bank and the customer.