How would non repayment of loan affect the economy of the country?

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20100323110750 20100323110750

03-06-2021
Business

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How would non repayment of loan affect the economy of the country?

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ParisAddict ParisAddict · Answer 1 · 2021-06-03T08:24:04-04:00

ParisAddict ParisAddict

03-06-2021

Answer: The economy would most likely suffer.

Explanation: Non-performing loans (NPLs) are a burden for both lender and borrower; they contract credit supply, distort allocation of credit, worsen market confidence and slow economic growth.

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