"Years after the global financial crisis of 2008-09 balance sheets of banks in many advanced economies and emerging markets remained clogged by non-performing loans (NPLs) – broadly understood as loans that are at least 90 days in arrears. This has brought the issue of NPL resolution to the forefront of policy debate, with countries from Italy to India putting forward packages aiming to reduce the ratios of NPLs to total loans (NPL ratios). Such packages may include establishment of Asset Management Companies specialising in dealing with non-performing assets, provision of public sector funds for bank recapitalisation with the view to facilitate management and write-off of NPLs, changes to loans classification and provisioning rules or amendments to the tax treatment of NPLs."
This paper is prepared by the EBRD in English language. Click here to access the document.
Source: EBRD
Illustration: EBRD