The focus of settling non-performing loans (NPLs) should be focused on corporate loans which have reached around 65 billion euros, not primary residences, according to the latest statements by the chair of European Central Bank’s Single Supervisory Mechanism (SSM), Daniele Nouy.
Nouy commented that “the problem of NPLs is huge and concerns many loans, mostly corporate ones. There is no reason to begin with primary residences.”
The statements came as a response to a question from a Greek MEP, as Nouy 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.”
The task force of the SSM has been delegated the job of drafting a set of guidelines under which the NPLs can be handled. They will review the draft sometime by the end of November, sources report.