Banking
Government Guaranteed Loan — Zero ECL
Releasing ECL provision on a loan fully guaranteed by the Jordan government.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| 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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