According to a recent report by the World Bank, private lenders have granted borrowers more flexibility with loan covenants and demanded fewer third-party guarantees.

ECONOMIST: Emerging-market debt

They have no desire to indulge in a further round of write-offs, which will weaken their balance-sheets, and thus have a temptation to extend loans and allow covenants (commitments by borrowers to meet certain financial conditions) to be renegotiated.

ECONOMIST: Buttonwood

And if the banks had foreclosed on all the commercial property loans in breach of covenants, there would again have been an acceleration of losses for borrowers and lenders.

BBC: Business