Traditional corporate loans, no longer a very profitable business, represent about 15 percent of Morgan's assets, down from 53 percent in 1985.

Interest-only loans represent a somewhat higher risk for lenders, and therefore are subject to a slightly higher interest rate.

Of concern to European financial officials was the fact that such large loans represent a change in the fund's lending policy.

That is because even relatively small loans - for a car or motorcycle - represent critical personal investments.

Still, the troubled loans and investments represent about 35 percent of Traveler's net worth.

The loan represents more than 25 percent of the new mortgage loans made last year.

Government officials were coy about saying whether the special loans from the central bank represented a use of public funds.

By official accounts, nonperforming loans represent 29 percent of the banking system's assets.

This loan was signed and sealed and represents an obligation.

And the $81 million loan represents 9.4 percent of its equity.