FRANKFURT, Germany, June. 8, 2016.- The banks in the euro zone may define when wanting to get out of bad loans under the new regulations will be published soon by the European Central Bank said on Wednesday a senior official body.
Banks and investors feared that the ECB could force a liquidation of bad loans, a legacy of the debt crisis in the euro area is holding back new lending, when it publishes its new recommendations on the issue later this year.
But the declarations of Daniele Nouy issued on Wednesday suggests that this process would not begin until several months and bankers will be given the opportunity to decide how fast you want to solve the problem.
“it also depends on the bankers decide whether to rush (…) or if you prefer to address the issue more gradually, but will have to stay with them (bad loans) longer,” said Nouy an event in Paris.
the official added that the ECB would dialogue with banks individually, suggesting that the supervisory body will be open to an approach specially adjusted for each bank, rather than a single initiative . generalized
the huge volumes of defaulted debt have been a problem for countries affected by the crisis as Greece and Italy, and the ECB – the main supervisor of banks in the euro zone – has become the matter one of his priorities this year.
Recently, the Italian government launched a fund to buy bad loans and recapitalize troubled banks.
Nouy said the ECB is near publish its report on unpaid loans and that banks will have the opportunity to offer their own conclusions about it before the topic is part of the new regulations supervisory body.
TFO
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