The EU’s non-performing loan
(NPL) action plan could prove particularly pertinent given the
developments in Italy recently, according to panellists at the
Association for Financial Markets in Europe’s
(Afme) NPL event in Brussels last week.
Peter Grasmann, acting director, DG FISMA
and head of unit at the European Commission said banks with
sub-standard business models and a lack of forbearance will not
be tolerated under the action plan and this will force banks to
change. In particular, facilitating out-of-court collateral
enforcement could be beneficial for Italy given their credit
recovery process is long and this drives up the stock of
The new Italian government presented its
contract for government vision that would increase the national
deficit by an estimated €100 billion ($117 billion
approximately) if fully implemented. For a country with debt
131.8% of its GDP this could prove disastrous.
Mixed within the toxic debt pile...