Browsing: non-performing loans

• Non-performing loans in Kenya surged to a 16-year high of 15 per cent in August 2023.
• The Kenya Bankers Association had called for further monetary policy tightening by the CBK, terming it a cure to elevated non-performing loans.
• According to the CBK data, forex pressure cut lending to the private sector to 8.3 per cent during the review period.

The banking sector regulator has said that Kenya’s private sector players resorted to alternative funding sources to avoid the high lending rates, leading to a drop in non-performing loans during the holiday season.

The continued surge in bank interest rates has hit individuals and businesses hard on the back of the Central Bank of Kenya’s (CBK) elevated benchmark interest rate. This has happened thrice since Governor Kamau Thugge took office, citing the need to support the country’s struggling shilling.

On Tuesday this week, the Central Bank of Kenya increased the benchmark …

• Global NPL and distressed assets present a promising opportunity for investors looking to diversify their portfolios.
• A forum at the Annual Investment Meeting explored how rising interest rates are creating opportunities for distressed debt investors. 
• Key speakers discussed the different asset classes, including real estate, corporate, and consumer debt.

Investors have been urged to capitalise on investing in distressed assets and non-performing loans to grow their portfolios. According to experts at the Annual Investment Meeting (AIM), non-performing loan (NPL) investing is becoming a popular strategy for investors seeking high returns.

The conference, which was held in two panels examined the current global economic environment and how rising interest rates are creating opportunities for distressed debt investors. 

According to Harvard Business School, distressed debt investing is the process of investing capital in the existing debt of a financially distressed company, government, or public entity. 

Why having partners is a must

The …