SSM calls for fo­cus on NPLs of com­pa­nies

Kathimerini English - - Focus - EVGENIA TZORTZI

Daniele Nouy, the chair of the Euro­pean Cen­tral Bank’s Sin­gle Su­per­vi­sory Mech­a­nism (SSM), has high­lighted the de­lays in the set­tle­ment of non­per­form­ing cor­po­rate loans, adding that debts se­cured by main res­i­dences are not the pri­or­ity.

In re­sponse to a ques­tion from a Greek MEP, Nouy said that “the prob­lem of NPLs is huge and con­cerns many loans, mostly cor­po­rate ones. There is no rea­son to be­gin with pri­mary res­i­dences.”

The French of­fi­cial added that “the set­tle­ment will have to start any­way as that would be to the ben­e­fit of both the cit­i­zens and the cor­po­ra­tions, and would al­low them to turn their non­per­form­ing loans into per­form­ing ones.”

She said that the SSM has asked a task force to draft a set of guide­lines for han­dling the ac­cu­mu­la­tion of bad loans, with the con­clu­sions set to be de­liv­ered within Novem­ber and con­sti­tute a roadmap for banks and the na­tional reg­u­la­tory au­thor­i­ties.

The de­lay, which has seen the value of bad cor­po­rate loans soar to al­most 65 bil­lion eu­ros, con­cerns the bill on the out-of-court mech­a­nism for the set­tle­ment of debts to the state and banks, the law change on the pre-bank­ruptcy pro­ce­dure, and the le­gal cov­er­age of bank of­fi­cials sign­ing cor­po­rate debt set­tle­ments – an is­sue that also af­fects the sale of bad loans.

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