The Italian Banking Association (ABI) is calling for further measures to speed up debt recovery procedures and make them more efficient. “In this regard, it could be useful to act with a forthcoming Decree-Law, to introduce certain provisions aimed at making enforcement procedures more effective and efficient, as well as less costly, thereby contributing decisively to the ‘take-off’ of the market for non-performing loans”, said ABI’s director general Giovanni Sabatini in a hearing before the Chamber of Deputies on the Economic and Financial Document (Def), according to whom “numerous empirical studies show that reducing credit recovery times can have significant positive effects on the valuation of non-performing loan portfolios and therefore help to narrow the gap between book values and the prices offered by the market”. In particular, the association’s estimates “indicate that, overall, for each year by which the time needed to recover collateral is reduced, the gap between bid price and ask price would narrow by about 10%”.
Leave a Reply