Debt Relief Programme: Descriptive Report

This report provides a descriptive overview of a debt relief programme targeting loans that were in default at the time of implementation. Using loan-level information covering 1,838,734 loans and 864,622 borrowers, the report documents programme scope, composition, and early engagement patterns. The programme consists of two components: (i) write-offs, which are administratively determined and require no borrower action, and (ii) renegotiation, which involves borrower engagement through a sequential process of inquiry and pre-arrangement. While write-offs represent 7% of loans but only 0.6% of total nominal amounts, renegotiation accounts for 93% of loans and 99.4% of amounts. Participation in renegotiation is relatively limited: 37% of eligible loans reach the inquiry stage and 9% reach pre-arrangement, with a marked drop-off between stages. To explore correlates of engagement, the report analyses a large subsample with enhanced socioeconomic information (the BPS subsample) and a cleaned final sample of 1,204,495 loans, summarising borrower demographics, debt levels, income, and institutional coverage. The descriptive evidence highlights the central role of debt recovery agencies and motivates further work to understand barriers to participation and to assess the programme’s effectiveness.