In all cases the assessment of loans — and decisions regarding adequate provisions — are assisted by the categorization of loans as defined by the Agency in section CM-2.2. In addition, with regard to "sovereign debt" it is particularly important that the size of the provisions made should be based on the identification and objective assessment of the nature and extent of difficulties being experienced by particular countries and reflect as near as possible deterioration in the prospects for recovering debts. With these objectives in mind, the Sovereign Debt Provisioning Matrix (see Appendix CM 1) contains a list of measurements which have been designed to help identify those borrowers and countries with payment difficulties and to decide what would constitute adequate provisions.