12 June, Bebeez
DBRS Morningstar reports a significant deterioration in the results of NPL securitizations following the pandemic. Between February and April, the average gross amount of collections had reduced by a minimum of 15% and a maximum of 70% compared to the previous six months, resulting in a worsening of the cumulative collection ratio (3%-25.5%). The total gross amounts collected by servicers had also reduced by 2.5% up to 10.7%.
There are worries that all the positive results achieved by the European banks in the NPL reduction might be wiped off, especially in the case of Italy, Spain, Greece and Portugal. However, DBRS Morningstar notes that banks are now more prepared to manage NPLs and deal with the emergency.
Translator: Cristina Ambrosi