It is the policy of ADB to place loans in non-accrual status for which principal, interest, or other charges are overdue by six months or in the case of loans that are not yet overdue, when there is expectation that interest and other charges will not be collected when they become due, at the point when such information is known.Interest and other charges on non-accruing loans are included in income only to the extent that payments have been received by ADB. Accordingly, loans are reinstated to accrual status when all the principal, interest and other charges due on the loan have been collected. ADB maintains a position of not taking part in debt rescheduling agreements with respect to sovereign loans. In the case of nonsovereign loans, ADB may agree to debt rescheduling only after alternative courses of action have been exhausted.
As of 31 December 2018, there were two nonsovereign loans in non-accrual status with principal outstanding of $95 million, of which $7 million is overdue (nil – 2017). There were no outstanding sovereign loans, both regular and concessional, in non-accrual status as of 31 December 2018 and 2017.