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Meanwhile, the many local credit co-operatives are stuck with bad loans equivalent to over 7% of all their lending.
It has paid as much as 20percentt interest on other loans, equivalent to credit card rates.
Margin loans equivalent to one-fifth the value of listed stocks poised the market on a tall but shaky scaffolding.
Its banks, mostly state-owned, are now nursing an estimated 7.9 billion euros ($10.7 billion) in bad loans, equivalent to as much as 22.5 percent of national output.
All this makes life even tougher for India's state-owned banks, which already have sour loans equivalent to 10-12% of their loan books.
The regional savings banks had nonperforming or delinquent loans equivalent to 4.4percentt of total loans in January, compared to 3.2percentt among regular, listed banks.
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The agreement for the loan, equivalent to about $4 billion, was announced at a press conference in Belgrade by Serbian government officials and Albert Jaeger, a fund representative.
Every member has a passbook to record her savings and each is entitled to a short- or long-term loan equivalent to three times her shares, up to a maximum of 500,000 shillings.
But lawyers for Spanish and Latin American investors said Tuesday that Santander had approached some clients, offering to also extend to them a loan equivalent to 85percentt of their original investment.
It has been reported that lenders could pay around 0.9% of the total amount, being borrowers, to guarantee a slice of the loan equivalent to 15% of the purchase price.
At face value, the banks' bad loans are equivalent to about 15percentt of Japan's annual economic output.
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