There can be a reduction in interest rates payable to banks - formally no losses, but less revenue for banks than before
Then there can be debt cancellation (write off) - then banks will have formally lost money. What happens in practice is that banks have provisioned amount right from the start, and if a transaction looks to be in trouble, they'll provision more (before even having losses or even negotiating a restructuring). Using these provisions up when restructuring does not create losses for the bank (as they have been "preemptively" booked in earlier periods) Banks typically pile up a lot of provisions in good times (subject to tax authorities, as these provisions reduce profits and thus taxes payable) and can ride out quite significant losses for a while before it really hurts. In the long run, we're all dead. John Maynard Keynes
Looking at the chunnel, no, if you have some shareholders for taking the bloodbath. If I have understand properly, it is a bonanza for the banks having financed it at the right time. La répartie est dans l'escalier. Elle revient de suite.
