Problem

Fraudulent loans

Other Names:
Loan fraud
Nature:
Loans obtained through or with an element of fraud, or which are used for purposes other than those intended, including diversion to the benefit of a few influential individuals. In some cases the borrower has no intention of using the loan for its stated purpose, and the lending institution may even be aware of this.
Incidence:
In the Philippines the Bataan Nuclear Power Plant loan, worth US$2.5 billion is cited as one of the most blatant examples of a fraudulent transaction in that country.
Broader Problems:
Inappropriate loans
Values:
Fraud
Problem Type:
E: Emanations of other problems
Subject(s):
Commerce Credit
Societal Problems Crime
Date of last update
27.03.1997 – 00:00 CET