ADB has never suffered any losses of principal on sovereign loans and maintains a position of not taking part in debt rescheduling agreements. Occasional delays have occurred in loan service payments on its sovereign loans but these have not been material to ADB's operations. During 2016, no loan loss provision has been made against outstanding sovereign loans (nil in 2015). There was no accumulated loan loss provision for sovereign loans as of 31 December 2016 and 2015.
ADB places loans in non-accrual status when they are past due by six months.
As of 31 December 2016, one nonsovereign loan was in non-accrual status with principal outstanding of $20 million, but without overdue principal (nil in 2015).