Analysis the phenomenon of distressed debts: - An applied study for enterprises which are working in the city of Erbil in 2016

Abstract

This research aims to identify the causes of bad debts of companies operating in the city of Erbil. And to provide appropriate treatment to solve this problem. The research reached a number of results, including the spread of the phenomenon of bad debts of companies, due to non-payment of their debts due to working banks, because government banks suffer from the problem of lack of liquidity because of the withdrawal of their balance by the provincial government. Which was reflected in the decline in consumption and investments and increase the unemployment rate in the region, especially in the city of Arbil. The study concluded by presenting a number of proposals that emphasize the need to address the problem of lack of liquidity in the banks operating in the Kurdistan Region and oblige the companies working to deduct their bad debts ranging from 5% to 20%, as well as rescheduling bad debts through preparing A new program to pay these debts gradually and progressively.