The European Commission will soon be publishing new proposals to make it easier for EU banks to sell non-performing loans (NPLs).
The Commission intends to present the new comprehensive NPL strategy before the end of the year. The European Commission strategy will focus on a mix of “complementary policy actions”, especially in the areas of:
Initially reported in the Financial Times, the strategy is expected to propose a series of measures to catalyse the sale and purchase of banks’ bad loans.
A European Commission spokesperson said: “It is important to tackle NPLs in an effective way. This has been and will remain a long-standing, key objective of our financial policy.
"Drawing on lessons from the last severe economic crisis, it is imperative to address any renewed build-up of NPLs on banks’ balance sheets as early as possible, while being mindful of debtor protection issues, in order to combat the implications of the pandemic.”