Okuzeka
Finance & Banking vocabulary · Loans & Credit

Restructuring

Meaning in finance & banking, with examples

/ˌriːˈstrʌktʃərɪŋ/nounCommon term

In finance & banking, restructuring means: Changing the terms of a loan, such as the maturity, instalments or interest, because the borrower has difficulty paying; also the reorganisation of a whole company.

In Turkish: yeniden yapılandırma, borç yapılandırma, yapılandırma

How it is used

Used in collections, credit risk and corporate banking. Banks offer, agree or carry out a debt restructuring, and the loan is then monitored closely as a restructured loan. In large cases several lenders sign a restructuring agreement together. In company news it can also mean job cuts and reorganised units.

Example sentences

  1. The loan restructuring extended the term by three years and lowered the instalments.

  2. We have agreed a debt restructuring with the company's main lenders.

Common collocations

  • debt restructuring
  • loan restructuring
  • restructured loan
  • restructuring agreement
  • non-performing loanA loan on which the borrower has stopped making payments, usually for 90 days or more, or which is unlikely to be repaid in full.
  • arrearsMoney that should already have been paid, such as missed loan instalments, rent or bills. A borrower who has missed payments is 'in arrears'.
  • refinanceTo replace an existing loan with a new one, usually to get a lower interest rate, a longer term or different conditions.
  • defaultFailure to make loan or bond payments as agreed. A borrower is usually treated as in default after missing payments for a set period, often 90 days.
  • provisionAn amount a bank sets aside from its profit to cover expected losses on loans that may not be repaid.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.