A Strategy for Developing a Market for Nonperforming Loans in Italy
IMF
Download Document| Date Published | 2015 |
| Version | |
| Primary Author | Nadège Jassaud and Kenneth Kang |
| Other Authors | |
| Theme | |
| Country | Italy |
Abstract
Addressing the buildup of nonperforming loans (NPLs) in Italy since the global financial crisis will remain a challenge for sometime and be important for supporting a sustained, robust economic recovery. The buildup reflects both the prolonged recession as well as structural factors that have held back NPL write-offs by banks. The paper discusses the impediments to NPL resolution in Italy and a strategy for fostering a market for restructuring distressed assets that could support corporate and financial restructuring.