IMF research looks to jumpstart market for Italian NPLs

Debt burden: Average time for writing off a bad loan has increased dramatically post-crisis

High and rising levels of non-performing loans (NPL) in Italy are depressing bank profitability and constraining new lending, prompting two IMF staff members to consider how the market for distressed debt could be jumpstarted in the country.

In their working paper, A Strategy for Developing a Market for Nonperforming Loans in Italy, Nadège Jassaud and Kenneth Kang highlight the need to tighten supervisory policies on provisioning and write-offs to speed-up the resolution and restructuring

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