Banking

Government Guaranteed Loan — Zero ECL

Releasing ECL provision on a loan fully guaranteed by the Jordan government.

Account NameTypeDebit ($)Credit ($)
Allowance for ECL (Released — Guarantee)Contra-Asset (-)50,000.00-
Impairment Charge (Reversal)Expense (-)-50,000.00

💡 Accountant's Note

Loans guaranteed by sovereign entities attract minimal ECL under IFRS 9. When an enforceable government guarantee is received on a provisioned loan, the provision is reversed to the extent of the guarantee coverage.

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