News

EU States Back Easier Sale Of Bank Bad Loans, No Deal On Foreclosures

Date: 27.03.2019 / Ekathimerini.com / Comments (0)

EU ambassadors backed on Wednesday new rules to facilitate banks’ sales of bad loans on their books but failed to agree on a reform that would make it easier for lenders to recover assets from borrowers who default.

The proposed rules are part of a wider overhaul of EU banking rules and aim to accelerate banks’ efforts to offload soured loans, which have reduced European banks’ ability to lend to households and companies since the 2007-09 global financial crisis.

The agreement reached on Wednesday is expected to favor the purchase and servicing of so-called non-performing loans (NPLs) “which will lead to the development of efficient secondary markets,” said Romania’s Finance Minister Eugen Teodorovici, who chaired the negotiations among the 28 EU countries.

Under the overhaul, which still needs to be finalised in agreement with the European Parliament, financial companies specialized in buying bad loans, such as private equity giant Blackstone and asset manager Cerberus, are set to gain easier access to NPLs across EU states.

The new rules are expected to lower regulatory barriers to making cross-border purchases.

This should further stimulate a secondary market for bad loans, possibly driving prices up and making banks more willing to sell.

The low prices of bad loans have long discouraged banks from offloading them. Although the mass of NPLs has been steadily decreasing in recent years, there is still a backlog of more than 700 billion euros ($789 billion) hanging over EU banks’ balance sheets, especially at lenders in Italy, Greece, Ireland and Cyprus.

In a less positive development for banks, EU states were not able to reach a deal on proposals put forward by the EU Commission on facilitating lenders’ recovery of assets from borrowers who default.

The proposal introduced a mechanism to facilitate out-of-court procedures on foreclosures, to speed up banks’ recovery of the collateral used by borrowers to obtain loans - when borrowers are too late on their repayment schedule.

This mechanism, envisaged only for business loans and not consumer loans, would increase the value of NPLs and reduce bank losses, but would increase the burden on firms.

EU states failed to agree on this part of the reform, an EU statement said. Talks will continue in coming weeks among EU countries and with EU lawmakers on this matter.

The reform needs to be agreed before EU elections in May.



http://www.ekathimerini.com/238949/article/ekathimerini/business/eu-states-back-easier-sale-of-bank-bad-loans-no-deal-on-foreclosures

Reviews & Comments


GPE360.com (GreekPropertyExchange.com) has relaunched as the top Greek real estate and property website portal dedicated to Greece and Cyprus’ industry. GPE360.com’s members include top real estate agents, realtors, individual sellers, FSBO, sale by owners, architects, developers, construction companies, lawyers, notaries and others that advertise residential (house, home, land, apartments, flats, villas, land, parcels and commercial listings for those looking to buy, sell and rent across all of the Hellenic Republic. GPE360.com is like the MLS database portal that is advertised in the top Greek diaspora and international markets around the world to those looking to invest - including Australia, the United States, Canada, United Kingdom, Germany, France, Spain, France, Europe, South Africa, Russia and everywhere else. Most foreigners start their home search in popular destinations like Mykonos, Chania, Crete, Athens, Thessaloniki, Cyclades, Santorini, Rhodes, Corfu, Ios, Lefkada and many more cities, prefectures and regions in Greece. GPE360.com has been featured in most Greek news media outlets and in some of the leading international publications in newspapers, magazines, websites, online news portals, television and radio. Notable publications featuring GPE360.com and its founder, Georgios Stroumboulis include the Wall Street Journal, G1 Brasil, India Today, Barron’s, El Mundo, Naftemporiki, Kerdos, Isotimia, Vradyni, Elefterotypia, Elefteros Typos, Imerisia, Ta Nea, Ethnos, Neos Kosmos, GreekReporter.com, PappasPost.com, Voria.gr, Parapolitika.gr, MetroGreece.gr, People Greece, NewsBeast.gr, Radio Neo Show, Antenna ANT1 Satellite TV, MEGA TV, Makedonia TV, Channel 9 (Το Α και το Ω των ακινήτων). GPE360.com is the only real estate website to have produced its own reality TV show called Hellenic Home Hunting (www.HellenicHomeHunting.com). Created, produced and edited by George Stroumboulis’ media company, BouliBrand (www.BouliBrand.com), this TV show caused an international media storm for controversy during the unstable economy period in Greece. Visit www.GPE360.com for the latest property listings and start your search, register for an account to sell or simply browse our news. Stay connected with us on Facebook (www.facebook.com/gpe360), Twitter (twitter.com/gpe360), LinkedIn (https://www.linkedin.com/company/greek-property-exchange-gpe-), YouTube (https://www.youtube.com/user/gpe360), and Instagram (www.instagram.com/gpe360/). Use the hashtag #GPE360 and #HellenicHomeHunting.



featured on the front page of

The Only TV Show Promoting
Greek Real Estate to the World!
WATCH FIRST SEASON