EU: Council Introduces Action Plan for NPLs

Schoenherr (Schönherr Rechtsanwälte) | View firm profile

On 10 July 2017, the Commission
announced the public consultation on the development of secondary markets for
non-performing loans (NPLs) and distressed assets. Following the commencement
of this public consultation, the Council introduced its Action Plan for NPLs.

As of the end of 2016, the outstanding volume of NPLs in the EU was
EUR 1 trillion. The Council considers a solution for NPLs paramount
to boost bank profitability, remove a lock-up of capital and reduce the risks
for the viability of banks with high NPL ratios. While the Council considers it
the responsibility of each bank to manage its NPL portfolio, certain actions
need to be taken to provide banks with a functioning framework to resolve their
NPL issues. read more…

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