Occurrence Of Default Research Articles

Wanprestasi Oleh Penjual Pada Perjanjian Pengikatan Jual Beli

Default is an act of breaking a promise must be from the seller to perform an achievement, if the implementation of the obligation is not affected by circumstances, then the seller has committed an act of breaking promise. In this case, the occurrence of what is done seller of land to a buyer who has good faith which result in a binding sale and purchase agreement that has been agreed and sight by boyh parties. So the purpose of this study is to determine the factors that cause the seller’s default on the sale and purchase binding agreement as well as the legal consequence of the default commited by the seller and how the (legal) efforts to resolves default disputes in the land sale and purchase binding agreemenat.The research method is using normative juridical research methods that are studied using a statutory research approach, literatur, papers, and books and using descriptive analysis. From the results of this study it can be conclude that the occurrence of default in the sale binding agreement made by the seller to the buyer is caused by a negligence factor in which there is an element of intentionality in the from of no good faith from the seller. There are legal consequences for the seller, namely defaulting on the sale and purchase binding agreement namely paying compensation suffered by the buyer, transferring risks, paying case cost.

HCNCT: A Cross-chain Interaction Scheme for the Blockchain-based Metaverse

As a new type of digital living space that blends virtual and reality, Metaverse combines many emerging technologies. It provides an immersive experience based on VR technology and stores and protects users’ digital content and digital assets through blockchain technology. However, different virtual environments are often highly heterogeneous in terms of underlying architecture and software implementation technology, which leads to many challenges in scalability and interoperability for blockchains serving the Metaverse. Cross-chain technology is an essential technology to realize the scalability and interoperability of blockchain. However, the current cross-chain technologies all have their own merits and demerits, and there is no cross-chain solution that can be fully applied to any scenario. To this end, in the blockchain-based Metaverse, this article proposes a cross-chain transaction scheme based on improved hash timelock, HCNCT. By combining the notary mechanism, this scheme uses a group of notaries to supervise and participate in cross-chain transactions, effectively solving the problem that malicious users create a large number of time-out transactions to block the transaction channel, which exists in the traditional hash timelock method. Besides, this article uses the verifiable secret sharing method in the notary group, which can effectively prevent the centralization problem of the notary mechanism. Moreover, this article discusses the process of key processing, cross-chain transaction and transaction verification of the scheme, and designs the user credibility evaluation mechanism, which can effectively reduce the occurrence of malicious default of users. Compared with existing solutions, our solution has the advantage of effectively addressing time-out transaction attacks and centralization issues while guaranteeing security. The experiments also verify the effectiveness of the proposed scheme.

The performance of Islamic and conventional microfinance loans in Afghanistan: The Taliban and beyond

The Afghanistan microfinance industry has witnessed laurels in recent decades, making it crucial to closely monitor its development and sustainability. This study aims to assess the performance of Islamic and conventional microfinance loans in two aspects: first, by examining the occurrence of loan defaults, and second, by distinguishing between loan performance in areas controlled by the Taliban and those outside their control. To accomplish this, we analyze a unique dataset comprising over 9500 borrowers linked to an Afghan microfinance institution during the period spanning from January 2017 to February 2020. Our findings reveal that regions under Taliban control experienced fewer instances of loan defaults compared to areas not under their influence. Additionally, our analysis indicates that borrowers of Islamic loans in Afghanistan default more frequently than borrowers of conventional loans, particularly in Taliban-controlled areas. These observations remain largely consistent when we explore the factors influencing the number of days overdue on loan repayments. Furthermore, our conclusions find further support from both of the microfinance institution's Islamic loan products: business Murabaha loans, available to individuals of any gender, and women Murabaha loans, created as a group lending scheme exclusively for women. The results from this study offer valuable insights into how policy discussions in Afghanistan should be adjusted to facilitate a smooth transition for the microfinance industry.

Wanprestasi Dalam Perjanjian Pembiayaan Konsumen (Studi Putusan Nomor 11/Pdt.G/2022/PN Bkt)

Activities between consumers and consumer financing institutions will occur if there is an agreement. In an agreement, an action cannot be separated from a person who cannot fulfill his obligations so that it can be said to have committed a negligence or made a mistake which is called a default. This research discusses Defaults in Consumer Financing Agreements (Decision Study Number 11/Pdt.G/2022/PN BKt). This research raises two problems, namely 1) How is the implementation of the agreement in consumer financing default cases based on the decision of the Bukitinggi District Court Number 11/Pdt.G/2022/PN Bkt? 2) What is the analysis of the judge's considerations in settling default cases in consumer financing agreements based on Bukitinggi District Court decision No. 11/Pdt.G/2022/PN Bkt? This study uses a normative juridical method. The data source used is secondary data, namely data obtained through a literature study with primary legal materials, secondary legal materials and tertiary legal materials. Data collection was carried out by (normative juridical) by using library research (library research) which is a data collection tool that is not directed directly to research subjects. The data analysis used is a qualitative analysis. The results of the study show how the judge considers the settlement of default cases in consumer financing agreements based on the decision of the Bukitinggi District Court Number 11/Pdt.G/2022/PN Bkt and the legal consequences of engagement from a civil aspect in the occurrence of default for both parties in case Number 11/Pdt .G/2022/PN Bkt.. In this decision the judge decided that PT. Mandiri Tunas Finance who defaulted on CV. Roberto First Works. The judge should have decided based on the Civil Code, to determine whether someone has defaulted based on the provisions of Article 1238 of the Civil Code13. In this case the legal consequence of the engagement from a civil aspect in the occurrence of default for both parties is to punish PT. Mandiri Tunas Finance to pay the costs of the case until the trial has been decided in the amount of Rp. 616,000 (six hundred and sixteen thousand rupiah).

Implementation Of Heavy Equipment Rental Agreements Between The Renter And CV. Yoga Rental In Bengkulu City

CV. Yoga Rental in Bengkulu City is one of the CVs engaged in heavy equipment rental. Often there are problems in the lease agreement between tenants and CV. Yoga Rental In Bengkulu City. One of them is the late payment by the lessee. The problem to be discussed in this study is whether the implementation of the heavy equipment rental agreement between the lessee and CV. Yoga Rental in Bengkulu City is in accordance with the Civil Code and is the settlement of default on the heavy equipment rental agreement between the tenant and CV. Yoga Rental in Bengkulu City is in accordance with the Civil Code. In this study the authors use the type of empirical legal research. The sample in this research is 1 (one) owner of CV. Yoga Rental In Bengkulu City, 3 (three) employees of CV. Yoga Rental in Bengkulu City and 3 (three) heavy equipment renters at CV. Yoga Rental In Bengkulu City. To answer the formulation of the problem, it can be concluded that: 1. That the implementation of the heavy equipment rental agreement between the tenant and CV. Yoga Rental in Bengkulu City has been carried out in accordance with the applicable provisions where the agreement uses a written rental agreement because it provides certainty about the rights and obligations of the parties who make it. Settlement of the occurrence of Default in the implementation of the heavy equipment rental agreement at CV. Yoga Rental is based on what was conveyed by the owner of CV. Yoga Rental, namely tenants who delay paying rent will result in the withdrawal of heavy equipment, but all problems will still be discussed in deliberation to get the best solution

SISTEM TANGGUNG RENTENG DALAM PEMBERIAN KREDIT MODAL USAHA PNM MEKAAR

According to the study's findings, the debtor is also an individual guarantee under the shared responsibility system, and the Civil Code's articles 1278 and 1280 provide legal protection for creditors. This study aims to shed light on how to implement the millennial economic strategy in a way that benefits both transaction actors and those who carry out transactions. Normative juridical research examines the doctrines or principles of the Science of Law. The quantity of tests in this review were 6 individuals. The study's findings demonstrate that debtors are also individuals under the joint responsibility system. The group is obligated to pay the debtors for their services, but the large number of installments causes members to feel resentment. This is because group members are also expected to pay back their loans. The credit disbursement processing does not begin as a result of this default's occurrence, which has consequences for the group it belongs to. This indicates that it is extremely challenging for the concerned group as well as other groups.

Procurement of Government Goods and Services in Surabaya City: A Juridical Analysis of Business Contracts

Effective procurement of goods and services in the Surabaya City Government area is essential to ensure that public funds are spent accountably and transparently. As such, there is an urgent need to examine the legal aspects of business contracts for the procurement of government goods and services in the city of Surabaya. The purpose of this study is to determine the factors that influence the occurrence of default by the Goods and Services Provider, as well as the responsibility of the regional head in the abuse of authority in the procurement of goods and services of local government. The research method uses normative juridical methods with a statutory approach and concept approach. The results of the findings in this study are that there are internal and external factors that make the occurrence of default where the agreement in an agreement is not implemented. Law Number 32 of 2004 concerning Regional Government for the implementation of legal liability of regional heads can be used as a guideline for the mechanism of legal liability of regional heads. The implementation of personal legal responsibility can be subject to article 3 of Law Number 31 of 1999 concerning Eradication of Corruption, as well as the return of state losses according to article 59 paragraph (2) of Law Number 1 of 2004 concerning State Treasury and article 18 letter b of Law Number 31 of 1999 concerning Eradication of Corruption. By shedding light on the legal framework that underpins procurement contracts in Surabaya, this study provides valuable insights for policymakers, public officials, and other stakeholders seeking to ensure the effective use of public funds in Surabaya City Government procurement.

Credit Restructuring Efforts for Micro, Small and Medium Business Debtors at PT. Bank BRI Unit Gianyar (Case Study at CV. Angga Sari Garmen)

Development in the economic field is the main driver of development, micro-enterprises play an important role in development and economic growth, this happens not only in developing countries but also in developed countries. The formulation of the problem in this study is: 1. How is the implementation of credit restructuring for MSME debtors at Bank BRI Gianyar Unit Office?, 2. What are the legal consequences for MSME debtors if the restructuring efforts are not successful? The research method used is a type of normative legal research. The most important part of developing micro-enterprises is business loans obtained from credit obtained from a bank. In an agreement, the debtor sometimes defaults. The problem in this study is the occurrence of default on credit agreements. Default or non-fulfillment of the agreement can occur either intentionally or unintentionally. Parties who commit defaults can occur because they are indeed unable to fulfill these achievements or are also forced to carry out these achievements.

National student loans default risk prediction: A heterogeneous ensemble learning approach and the SHAP method

National student loans are crucial for ensuring that economically disadvantaged students are able to complete their education successfully, however, the high default rate and excessive demand associated with these loans pose significant risks to various stakeholders. Students' repayment behavior can have adverse impacts on the state, banks, universities, and themselves. Despite the importance of this issue, there has been a lack of empirical research on national student loan default data using machine learning methods, and it has ignored the impact that student growth processes may have on default behavior. In this study, we addressed this research gap by integrating multiple heterogeneous machine learning models through performance analysis to improve prediction accuracy. Furthermore, we utilized the SHAP interpretable method to examine the relationship between students' growth process and loan default behavior in greater depth. The results of this study confirmed that the total amount of scholarships received by students during their school years has a significant impact on the occurrence of loan default. Specifically, the more scholarships students receive, the less likely they are to default. Additionally, we found that students' performance during school, as reflected by their GPA, is a significant predictor of default behavior. Surprisingly, we also found that college entrance examination scores can influence the risk of loan default to a certain extent. This study provides valuable insights for schools regarding students who apply for national student loans and establishes a bridge for college administrators to predict students' default behavior based on campus “big data”. Based on the study results, college administrators can design “precise” education programs during students' study period to effectively reduce the risk of national student loan default.

THE NOTARY ROLE IN THE IMPLEMENTATION OF A PAWN PAYMENT AGREEMENT ACCORDING TO HABITS OR TRADITION (GA'DE DAE) IN PUKDALE VILLAGE, KUPANG REGENCY, NTT

The implementation of traditional pawn agreements is usually carried out by indigenous groups in several remote areas in Indonesia. An example of the traditional pawn that still exists today is the traditional pawn carried out by the community in Pukdale Village, East Kupang District, Kupang Regency. The community or the parties who make this pawn agreement, should have started to involve a notary in the pawn agreement process, so that it can provide legal certainty guarantees and have perfect power of proof in accordance with the mandate of the law. The research problems in this study are regarding the Urgency of the Role of the Notary in the Pawn Agreement Process according to habit or tradition (Ga'de Dae) in Pukdale Village, Kupang Regency, NTT and the Implementation of the Notary Deed in the Pawn Agreement. The research typology used is exploratory design, and the form of research is Juridical Empirical. While the data analysis method used is a qualitative approach method. The results of the study indicate that the role of the Notary in a Pawn Agreement is indeed very necessary to ensure the strength of the Proof of the Pawn. One of the factors for the occurrence of conflicts or defaults carried out by the parties in the pawn is due to the absence of an authentic deed that can provide separate protection for the parties. The implementation of the Notary Deed in the Pawn Agreement must continue to pay attention to the provisions of the existing legislation, so that the authenticity of the deed is guaranteed. A notary as a public official who makes an authentic deed is responsible for his actions in connection with his work in making the deed.

Risk prediction of enterprise credit financing using machine learning

For the credit financing risk of small, medium-sized and micro enterprises, a risk prediction model of enterprise credit financing management based on antagonistic neural network and least squares support vector machine is proposed. The data samples are processed combined with antagonistic neural network, and the risk prediction of enterprise credit financing is realized by using least squares support vector machine model. Compared with many classification models, the effectiveness of the least squares support vector machine model is verified. The results show that the accuracy rate of the least squares support vector machine model is 90.15%, the recall rate is 85.63%, and the prediction error rates of the model in default and non default are 6.48% and 3.09% respectively, which is better than BP neural network, random forest algorithm and Gaussian naive Bayesian algorithm. The least squares support vector machine model can effectively and accurately predict the enterprise credit financing risk, provide scientific and efficient risk early warning for the enterprise credit financing control, and provide technical support for preventing and reducing the occurrence of loan default.

TINJAUAN YURIDIS TENTANG WANPRESTASI PERJANJIAN ANTARA PEKERJA KONTRAK (PKWT) TERHADAP PERUSAHAAN DI PT. TENAGO TRIMINDO (BERDASARKAN UNDANG – UNDANG NO 13 TAHUN 2003 TENTANG KETENAGAKERJAAN)

At a company called pt. Tenago trimindo engaged in the farmers' forest industry, they made an agreement with the people who became workers/ laborers. The employment contract is made as an anticipation that each party will have the opportunity to default in the future. Both from the pt. Tenago trimindo or it could be from the employees. After some time has passed, a work agreement has been agreed between the company and the workers, the facts on the ground explain that the people who work have deviated from the agreed work contract. The fact that the author got from various information there are several contract workers/labor contract treason, both work contracts and collective labor contracts, the violation committed by contract workers/laborers is to run away from the company before the work contract expires, while in the agreement made by pt. Tenago trimindo which has been agreed upon by contract workers/laborers must complete the term of their work contract properly.
 As for in this study, there are main problems that will be discussed, namely, the factors occurring default agreements between contract workers against pt. Tenago trimindo and the second is legal remedies that can be carried out by the company if the contract workers do not fulfill the contents of the contract work agreement. And the purpose of this study is the same as the formulation of the main problem, namely to find out the results of the formulation of the problem made by the researcher.
 This legal research belongs to the type of survey research (observational research). This type of research method is intended to solve problems that exist at the present time by collecting data and compiling or clarifying it, then analyzing and seeing a legal reality in society to then obtain a result
 The results of the research that the authors obtained are factors that influence the occurrence of defaults carried out by contract workers against the company pt. Tenago trimindo are: irregular working hours factors, late payment of basic salary factors, work pressure factors, non-fulfillment of workers' rights, inappropriate job descriptions. The legal remedies that can be taken by the company if the contract workers do not fulfill the contents of the contract work agreement are settlements by the disputing parties so that results that benefit both parties can be obtained. Such a bipartite settlement can be carried out through deliberation and consensus by the parties without being interfered with by any party. However, if the settlement of the non-litigation path cannot be reached, then the litigation route is taken, namely the industrial relations court, hereinafter referred to as PHI.

Validity of Addendums which Made Under Hands Due to a Default on Cooperation Agreement Deed

This writing aims to find out and analyze the validity of the addendum made by the parties under the hand due to the occurrence of default of the cooperation agreement deed made before a Notary and to know and analyze the legal considerations by the judge in deciding the case number 15/Pdt.G/2016/PN.Kds. This research method uses a normative juridical approach, which is an approach using secondary data as the main data. Secondary data is data obtained by conducting library research. The results of this study indicate that basically in an agreement it is allowed to add an addendum on the condition that the parties agree, this is because in the addition of an addendum to add, changing or eliminating something in the agreement is always related to the main agreement, as stipulated in Article 1320 of the Civil Code regarding the conditions for the validity of the agreement. The main key to an addendum is the agreement of the parties in accordance with Article 1320 of the Civil Code.

Bank lending, collateral, and credit traps in a monetary union

This paper studies the transmission of non-standard monetary policy to firms’ investment in a monetary union where financial frictions limit the access to external finance. The model incorporates a sovereign-banking nexus where the occurrence of sovereign default severely hits the balance sheet of domestic banks. This feature impairs monetary transmission, generating responses of lending that diverge across countries, as well as the risk of cross-border spillover effects. Specifically, I show that the liquidity injected into the stressed country’s banks can result in financing the sovereign rather than boosting lending. Moreover, sovereign risk in one country can reduce asset values and, via the collateral channel, depress lending throughout the monetary union. The model sheds light on the troubled transmission of the ECB’s policy measures to the economy of stressed countries during the European sovereign debt crisis.

Wanprestasi Dalam Perjanjian Antara Taylor Mahirah Gorden Dengan Pemilik Pakaian

Default means less performance either or does not fulfill this obligation as which has been agreed. No only it can also be meant the absence of something Achievement. and if there is a default, icertainly infringement of in law interest, iinterest which is regulated and protected by law - the debtor, even though-has been declared negligent, still negligent to fulfill the commitment, or if something which must be given or do only in a time which has been determined. The type of study used in in this study is a juridical empirical study. The data sources for this research are primary data and secondary data. This research is classified as research with qualitative data types, namely by managing primary data sourced from Taylor Mahirah Gorden. The results of the research from this paper indicate that: 1) What are the causes for the occurrence of default in the agreement between the sewing owner and the tailor. 2) Efforts to resolve non- performance that were carried out by business sewing services clothes Taylor Mahirah curtains.

Does use of nontraditional credit increase risk?

PurposeA potential farm policy concern is that if nontraditional (vendor/point-of-sale) financing represents increased risk, it may have an aggregate effect on sector-wide farm financial risk. This analysis examines the use of nontraditional lender credit among borrowers in the US Department of Agriculture (USDA)'s Farm Service Agency (FSA)'s direct farm loan programs.Design/methodology/approachData source included the USDA FSA direct operating loan program for 2011–2020. A Cox proportional hazards model was used to estimate the occurrence of default over seven-year term direct operating loans.FindingsResults indicated that point-of-sale financing has a significant and positive relationship with risk for FSA direct operating loan borrowers. The presence of intermediate point-of-sale financing (mostly from machinery and equipment vendors) is associated with an increased probability of default of 9%, and the presence of such loan balances in the amount of $50,000 or more had a higher probability of default of 21%. Short-term nontraditional financing (for example from fertilizer vendors) was found to be positively related to borrower risk of default as indicated by a 22–25% increase in the likelihood of loan default.Originality/valueThrough FSA Farm Business Plan data, the authors were able to distinguish specific vendors and their loan purpose, which advances the knowledge beyond what is currently available through survey data. Findings indicate a minor increase in borrower risk for those with intermediate-term nontraditional financing. However, borrowers with short-term nontraditional financing and having large balances or greater number of nontraditional loans had increases in risk of default by substantive amounts.

Penyelesaian Perjanjian Kredit Terhadap Debitur yang Wanprestasi di Pt. Bank Perkreditan Rakyat Hari Depan Denpasar

Indonesia is a developing country, this development is followed by rapid competition. In carrying out activities in any field, especially in economic activities, the community should not act recklessly but must follow the applicable norms. The government in an effort to equalize the welfare of its people creates a forum for community associations to process funds owned or borrowed funds to open a business. One of them is a bank that is engaged in the financial sector. People's credit banks are the government's solution to provide convenience to the community but with terms and conditions in the lending process. Every community who wants to borrow money for certain purposes can be done at BPR, those who want to borrow capital must have collateral which will later be calculated according to the desired loan, but it is not uncommon for bank staff to not think about the amount of collateral used with borrowed funds, resulting in frequent defaults. This study examines the factors that cause default in the credit agreement at PT. The People's Credit Bank for the Future of Denpasar and explained the efforts of PT. The People's Credit Bank of Denpasar is in the process of settling debtors who are in default. Researchers conduct direct information searches through interviews or empirical research with a case and legislation approach. Furthermore, the data were analyzed using qualitative descriptive. The factor for the occurrence of default is due to the negligence of the bank in complying with the rules that have been outlined. Efforts made to customers who are in default are conducting coaching, rescuduling, reconditioning and restructuring, if not fulfilled, a settlement will be carried out under the hands of selling both parties, the last stage is the determination of execution through the court. If the determination has been granted, the creditor immediately carries out the execution in accordance with.

Notaries Role Analysis in Implementation of Credit Agreements & Defaults Settlement with Guaranteed Liability

Analysis of the Role of a Notary in the Implementation of Credit Agreements and Efforts to Settle Default with Guaranteed Mortgage at Bank BRI, Tegal City requires the assistance of a Notary. This happens because the Notary is authorized to make a form of authentic deed that is able to provide legal protection to the parties to the agreement. Regarding the authority of a Notary as a general official making an authentic deed, it can be seen in the provisions of Article 15 paragraph (1) of Act No.: 30 of 2004 concerning the Position of a Notary. The objectives of this journal research are one, to identify and analyze the role of a Notary in a credit agreement with mortgage guarantees at Bank BRI Tegal City Branch Office; two, to find out and analyze the factors causing the occurrence of Default in the credit agreement with the guarantee of Mortgage at Bank BRI Tegal City Branch Office; three, to find out and analyze how to settle defaults in credit agreements with mortgage guarantees at Bank BRI Tegal City Branch Office. The approach method used is the sociological juridical method, the research specifications used are analytical descriptive, using observation and interviews, secondary data collection techniques using library research, and data analysis methods using qualitative analysis. The results of the research and discussion, First, the role of the Notary in the implementation of the credit agreement, as an official authorized to make an authentic deed who is burdened with responsibility in connection with his work in making the deed and the deed can provide legal certainty for the parties in the credit agreement so that the Notary is to prioritize the balance between the namely rights and obligations of the parties who appear before the Notary. Second, the factors causing the occurrence of Default in the credit agreement with guaranteed mortgage rights at Bank BRI Tegal City Branch Office, there are internal factors and external factors causing non-performing loans. Third, Settlement of default in the credit agreement with collateral rights at the BRI bank Tegal City Branch Office can be done by using rescheduling, reconditioning, and restructuring methods.

Notaries Role Analysis in Implementation of Credit Agreements & Defaults Settlement with Guaranteed Liability

Analysis of the Role of a Notary in the Implementation of Credit Agreements and Efforts to Settle Default with Guaranteed Mortgage at Bank BRI, Tegal City requires the assistance of a Notary. This happens because the Notary is authorized to make a form of authentic deed that is able to provide legal protection to the parties to the agreement. Regarding the authority of a Notary as a general official making an authentic deed, it can be seen in the provisions of Article 15 paragraph (1) of Act No.: 30 of 2004 concerning the Position of a Notary. The objectives of this journal research are one, to identify and analyze the role of a Notary in a credit agreement with mortgage guarantees at Bank BRI Tegal City Branch Office; two, to find out and analyze the factors causing the occurrence of Default in the credit agreement with the guarantee of Mortgage at Bank BRI Tegal City Branch Office; three, to find out and analyze how to settle defaults in credit agreements with mortgage guarantees at Bank BRI Tegal City Branch Office. The approach method used is the sociological juridical method, the research specifications used are analytical descriptive, using observation and interviews, secondary data collection techniques using library research, and data analysis methods using qualitative analysis. The results of the research and discussion, First, the role of the Notary in the implementation of the credit agreement, as an official authorized to make an authentic deed who is burdened with responsibility in connection with his work in making the deed and the deed can provide legal certainty for the parties in the credit agreement so that the Notary is to prioritize the balance between the namely rights and obligations of the parties who appear before the Notary. Second, the factors causing the occurrence of Default in the credit agreement with guaranteed mortgage rights at Bank BRI Tegal City Branch Office, there are internal factors and external factors causing non-performing loans. Third, Settlement of default in the credit agreement with collateral rights at the BRI bank Tegal City Branch Office can be done by using rescheduling, reconditioning, and restructuring methods.

Forecasting Loan Default in Europe with Machine Learning

AbstractWe use a dataset of 12 million residential mortgages to investigate the loan default behavior in several European countries. We model the default occurrence as a function of borrower characteristics, loan-specific variables, and local economic conditions. We compare the performance of a set of machine learning algorithms relative to the logistic regression, finding that they perform significantly better in providing predictions. The most important variables in explaining loan default are the interest rate and the local economic characteristics. The existence of relevant geographical heterogeneity in the variable importance points at the need for regionally tailored risk-assessment policies in Europe.