Distressed city renews loan (10)

I believe the answer is:

neworleans

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'distressed city' is the definition.
I know nothing about this answer so I can't judge whether this works.

'renews loan' is the wordplay.
'renews loan' can be anagrammed to 'NEWORLEANS'.
But, I am not sure how this is indicated.

Can you help me to learn more?

I've seen this clue in The Irish Times.

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