Spain 
Italy 
Greece 
ECB Postpones New Rules for Banks’ Bad Debts
24 January 2018
The European Central Bank (ECB) is expected to postpone the publication of new rules aimed at a reduction of non-performing loans in the eurozone, after fierce criticism from banks and lawmakers.
The ECB’s priority has been to seek to reduce the volume of distressed debts affecting the eurozone’s banks, which total approximately €759 billion, a consequence of the financial crisis.
ECB supervisors are expected to release a preliminary draft of the new measures next March, Reuters reports, citing three sources close to the report. They anticipate, however, that the document will probably serve only as a guide, and that the central bank will most likely only approve the rules in the months ahead.
Non-performing loans are a problem, especially in countries like Portugal, Italy and Ireland. Banks are worried that new capital requirements to cover bad debt portfolios could strangle their ability to finance companies and the economy. Brussels is preparing legislation aimed at those debts.
The ECB’s recommendations vis-à-vis the bad debts, which have been the subject of successive delays, should only be announced by the end of March.
A spokesperson for the ECB declined to comment on the matter.
Original Story: Dinheiro Vivo – Elisabete Tavares
Translation: Richard Turner