The adjustment in respect of the write-offs/write-downs is reported in order to remove from the flows statistics the impact of changes in the value of loans recorded on the balance sheet that are caused by the application of write-off/write down of loans. It should also reflect the changes in provisions on loans if an NCB decides that outstanding stocks should be recorded net of provisions. Write-offs/write-downs recognised at the time the loan is sold or transferred to a third party are also included, where identifiable.
