Italian banks securitize more NPLs
Bad loans worth more than 65 billion euros were securitized by Italian banks last year (2017: less than 40 billion euros). The securitization of problem loans is considered an important step towards tackling Italy’s NPL problem. The securitization is guaranteed by a program of the Italian government – the financial support was provisionally extended by the coalition of 5Stelle and Lega Nord until 6th March.
Overall, Italy’s debt slighty rose last year – but less so than originally assumed by the Italian government. According to calculations by Bloomberg, the ratio of debt to gross domestic product was 131.5 per cent based on Bank of Italy figures released on Friday. Reducing the debt burden in Italy is of the utmost importance to the country and the euro area as a whole. The European Union has repeatedly stated that less debt is needed to strengthen the country’s economy. Institutional Money, Bloomberg
(Δικαιώματα εικόνων: Reggio Emilia, Italy - January 6, 2011: Provincial head office of the Bank of Italy (Banca d'Italia) in Reggio Emilia with Italian flags.)
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