Corporate Loan Recovery Rates under Downturn Conditions in a Developing Economy: Evidence from Zimbabwe

In this study, we design stepwise ordinary least squares regression models using various amalgamations of firm features, loan characteristics and macroeconomic variables to forecast workout recovery rates for defaulted bank loans private non-financial corporates under downturn conditions in Zimbabwe. Our principal aim is identify interpret the determinants loans. For suitability efficacy purposes, adopt a unique real-life data set firms pooled from major anonymous Zimbabwean commercial bank. empirical results show that size, collateral value, exposure at default, earnings before interest tax/total assets ratio, length process, total debt/total ratio (current assets–current liabilities)/total assets, inflation rate, rate real gross domestic product growth are significant RRs We reveal accounting information useful examining corporations distressed financial economic conditions. Moreover, discover prediction augmented by fusing features with factors.