EU wants to help banks with distressed loans

The European Commission has developed a plan to help banks dispose of outstanding loans more easily so that they can continue to lend to companies and families affected by the pandemic.

The lesson from the previous financial crisis was that the lack of resolution of unpaid loans or the so-called non-performing loans (NPL) prevented banks from continuing to borrow, and this is an essential element in the recovery of the economy in a region heavily dependent on banks helping businesses, writes…