Calculate the portfolio at risk ratio for thirty days

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Reference no: EM131917459

Problem

There is a micro finance institution in Tanzania that is worried about a set of payments that have yet to arrive. Without these payments, it won't be able to disburse as much in the next round of loans as it had hoped to. The gross loan portfolio is valued at $200,000. There are 50 outstanding loans that each have missed two installments of a $200 loan to be paid biweekly over 5 months. Before missing these two consecutive installments, the borrowers each made the first three installments. Calculate the portfolio at risk ratio for 30 days and explain how this affects the security of the loan portfolio.

Reference no: EM131917459

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