The last request from the head of the division to you is based on the following year-end balance sheet of Unibank (in millions of dollars):

Assets	$	Liabilities and equity	$
Cash	3	Deposits	35
Liquid assets	30	Interbank loan	5
Loans	55	Equity	48
Total assets	88	Total liabilities and equity	88

The loans are primarily fixed-rate, medium-term loans, while the deposits are either short-term or variable-rate deposits. Rising interest rates have caused increases in loan defaults and, as a result, 4 per cent of the loans are considered to be uncollectable and thus have no economic value. Half (50%) of these uncollectable loans will be charged off. Further, the increase in interest rates has caused a 3 per cent decrease in the market value of the remaining loans.

What is the impact on the balance sheet after the necessary adjustments are made according to book value accounting?