In this parable, Jesus had just told the story of a servant who owed his master 10,000 bags of gold and could not repay the debt. The only solution to get the money back was to sell the servant and his family into lifelong slavery. But when the servant begged for mercy, his master forgave his debt (accepted a personal loss and discharged the servant from any further obligation to pay). It was a picture of God's compassion: He has mercy on anyone who asks for mercy, giving them the chance to start again without the debt of sin hanging over them.