Debt classification

The different classifications of debt such as public and publicly guaranteed debt, private non-guaranteed credits, central bank deposits, etc.

debt designation
debt regulation
classification of debt
classification of a debt
debt allocation
debt arrangement
classifying debt

knowledge

cross-sector

Debt classification is an essential knowledge of the following occupations:

Credit analyst: Credit analysts investigate credit applications from customers and evaluate if the applications comply with regulations and guidelines of the financial loan-granting institution. On the basis of credit analyses they advise financial institutions whether customers are loan worthy. They perform tasks such as collecting data on the loan applicant, aquire additional information from other departments or institutions and indicating what sort of agreements the financial institution should reach with the credit applicant. Credit analysts also follow up on the development of the credit portfolio of clients.
Tax compliance officer: Tax compliance officers collect fees, debt, and taxes on behalf of government institutions in cities, municipalities and other jurisdictions. They perform administrative duties and communicate with other officials and institutions to ensure operations are correct and compliant with policies.
Debt collector: Debt collectors compile debt owned to the organisation or third parties, mostly in cases when the debt is past its due date.

Tax clerk: Tax clerks collect financial information in order to prepare accounting and tax documents. They also perform clerical duties.
Bankruptcy trustee: Bankruptcy trustees administer a client’s bankruptcy case, investigate legal documentation for fraud possibilities and manage the money received from the sale of non-exempt property so as to distribute it to the owed creditors.

Debt classification is optional for these occupations. This means knowing this knowledge may be an asset for career advancement if you are in one of these occupations.

Financial manager: Financial managers handle all the matters in reference to the finance and investments of a company. They manage financial operations of companies such as the assets, liabilities, equity and cash flow aiming to maintain the financial health of the company and operative viability. Financial managers evaluate the strategic plans of the company in financial terms, maintain transparent financial operations for taxation and auditing bodies, and create the financial statements of the company at the end of the fiscal year.
Public finance accountant: Public finance accountants head the treasury department of a governmental institution. They manage the institution’s financial administration, expenditure and income generation, and compliance with taxation and other financial legislation. They perform administrative duties to ensure record keeping, develop plans for budget management and perform financial forecasts.
Loan officer: Loan officers assess and authorise the approval of loan applications for individuals and businesses. They ensure complete transactions between loan organisations, borrowers, and sellers. Loan officers are specialists in consumer, mortgage, or commercial lending.
Investment fund manager: Investment fund managers implement and monitor the investment strategy of a fund. They manage the fund’s portfolio trading activities and supervise the financial, securities, and investment analysts in charge to perform research on the investments and then make buying and selling recommendations. They make decisions on when to buy or sell the assets included in a portfolio. This manager works in a variety of settings such as banks, companies and stockbroking companies; working closely with the investment analyst. This occupation manages strategy and does not always work with relations between shareholders or investors.

References

1. Debt classification – ESCO