The principle of effective restructuring, loan restructuring can play a positive role in reducing credit risk and loan loss, standardize the operation principle, loan restructuring must be operated and approved in strict accordance with the prescribed conditions and procedures, and the principle of appropriate concessions. Loan restructuring can make certain concessions within the scope permitted by policies to promote loan recovery.

Restructuring loan is called restructuring loan, which refers to the loan that the bank adjusts the repayment terms of the loan contract because of the borrower's financial situation deterioration or inability to repay. The restructuring measures usually taken by banks for problem loans include the following contents: loan extension, repayment of old loans, repayment of old loans, reduction or full reduction of penalty interest, partial reduction or exemption of principal, debt-for-equity swap, physical loans, additional collateral, re-determination of repayment methods and repayment amount each time, etc.

Restructuring loan is actually a special form of debt restructuring between loan banks and borrowers. It refers to the behavior that the loan bank makes partial concessions and agrees to modify the repayment conditions according to the agreement reached with the borrower or the court's ruling because the borrower's financial situation deteriorates and he is unable to repay the due loan principal and interest.

Restructuring loans have four main characteristics. First, the main body of the restructuring loan must be the loan bank, that is, the creditor, and the borrower, that is, the debtor. Second, the repayment conditions must be modified on the basis of the original loan contract. Third, the borrower must be willing to repay all or part of the debt. At the same time, the lending bank made concessions on rights and interests at the expense of reducing or exempting some debts, delaying the realization of creditor's rights or changing the way of realizing creditor's rights. Fourth, it must be conducive to enhancing the borrower's business ability and development potential, safeguarding the creditor's rights of loan banks, reducing financial risks, and safeguarding national economic and financial security and social stability.

legal ground

Guiding principles of loan risk classification

Article 7 Loans that need to be restructured shall at least be classified as sub-loans; If the restructured loan is still overdue or the borrower is still unable to repay the loan, it should at least be classified as suspicious.

Restructuring loan refers to a loan in which the bank adjusts the repayment terms of the loan contract due to the borrower's financial situation deterioration or inability to repay.

If the restructured loan has other more serious characteristics, it can be further adjusted with reference to Articles 4 and 5 of these Guiding Principles.