Question: While looking at Debt Restructuring, there is always the problem of reducing the amount owed, which creditors are most reluctant to do in this situation.

While looking at Debt Restructuring, there is always the problem of reducing the amount owed, which creditors are most reluctant to do in this situation.

They are more likely to agree to reducing the interest charged on a loan. How would a reduction in an interest rate, say from 6% to 1% on a loan be recorded?

Please answer using 100 words or more.

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