BIS central bankers’ speeches  7  duration of the stream can be lengthened; the payments can be back-loaded; the overall level of payments, measured for example by net present value (NPV), can be lowered. Duration and back-loading help with distress that is perceived as temporary.
An increased duration is used in combination with a lower annual payment: this can suit a borrower whose income-expenditure situation has deteriorated but has enough working lifetime left to pay off the full outstanding debt with interest over a longer period. Back-loading is suitable where the income position of the borrower has deteriorated but there is a reasonable chance of future recovery.