Whitney Mulobela writes…
Ambassador Emmanuel Mwamba this is what it means in simple terms. Memory B Simwaba MSc ACCA AZICA writes…
DEBT RESTRUCTURING IN SIMPLE TERMS
Debt Restructuring comes in three forms:
Total forgiveness, prolonging the length of the loan, reducing the interest.
Think of it at personal level, you owe kaloba 100,000 and you are required to pay 10,000 every month towards your debt,if you don’t pay, more interest keep accruing , your salary is 6000.
How stressful is that? Then you engage the owner of the money and explain your financial stress and incapability to manage the 10,000 monthly which is leaving u with no money at all.
The owner of the money listens and you are told they ll stop accruing more interest or reduce the interest and extend your repayment to 36 months allowing u to be paying K2700 per month. Tell me if this is good for you or not? What is your benefit?
BENEFITS:
- from your 6000 you ll remain with 3300
- More money in your pocket
- You can even invest as you pay your debt