Non-Performing Loans and the Accumulation of Interest: The Limits of Debtor Protection under Comorian Banking Law
While Comorian banking regulations provide a detailed framework for the prudential deterioration of a loan classified as non-performing, they do not necessarily attach the same consequences to the relationship between the bank and its debtor. A loan may therefore be provisioned as doubtful in the institution's accounts while continuing, as a matter of law, to accrue interest, bank charges and penalties against the customer. This disconnect reveals an important limitation of the current framework and calls for an examination, beyond prudential regulation, of the mechanisms capable of containing the continued growth of the debt.
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