strategy

Capitalizing interest

Context:
Partial or complete interest capitalization is a constructive alternative to accumulating new loans to finance interest due.
Counter Claim:
Under USA banking regulations capitalization is currently tantamount to non-payment: the loans involved would be declared non-performing. A change in regulations will be needed to make this approach viable. Moreover automatic interest capitalization may prove unacceptable to commercial creditors, most of whom will prefer to keep the refinancing of interest a matter for negotiation.
Broader:
Capitalizing
Subjects:
Finance
Type Classification:
D: Detailed strategies