eu seeks collective approach to deal with bad loans
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

EU seeks collective approach to deal with bad loans

Arab Today, arab today

Arab Today, arab today EU seeks collective approach to deal with bad loans

Brussels - Arab Today

EU finance ministers have backed proposals to jointly address the issue of non-performing loans in the banking sector, which has been an economic problem particularly in Italy and Spain.
At a regular gathering on Tuesday, the finance ministers outlined policy actions to reduce the EU’s total stock of bad loans, which amounted to nearly €1 trillion ($1.14 trillion) at the end of 2016 — equivalent to 6.7 percent of the bloc’s annual gross domestic product (GDP), or 5.1 percent of total loans.
“Non-performing loans are a problem for the banking industry for which solutions have until now been mainly defined at the national level,” said Toomas Toniste, Estonia’s finance minister who was chairing the meeting as his country has taken over the rotating 6-month presidency of the EU.
“We need a more collective approach,” he added.
Among the measures proposed is reform of insolvency and debt recovery frameworks, changes in bank supervision and developing so-called secondary markets where “distressed” assets can be sold.
The scale of the problem varies hugely between EU countries, according to a report prepared for ministers. Sweden’s bad loans amount to only 1 percent of total loans, while Greece’s account for a massive 46 percent.
Italy is one big economy that has been contending with loans gone bad. Its banks have been worn down by some €360 billion in loans that will not be paid back in full as a result of years of crisis and subdued growth that has made it difficult for firms and households to service their debts. At the end of 2016, the scale of Italy’s non-performing loans stood at a bit more than 15 percent of the banks’ total loan stock, a level that weighs on their propensity and ability to lend.
Last week, the Italian government took control of bank Monte dei Paschi di Siena under a relaunch plan that includes the disposal of €28.6 billion in bad loans at a big discount to their original value. The bailout includes the use of taxpayer money to shore up the bank, something new EU rules try to avoid, but was cleared by EU authorities.
The hope is that by getting a grip on bad loans, the Italian economy can move on.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eu seeks collective approach to deal with bad loans eu seeks collective approach to deal with bad loans

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eu seeks collective approach to deal with bad loans eu seeks collective approach to deal with bad loans

 



GMT 23:04 2017 Monday ,04 December

Saudi Arabia recalls ambassador to Germany

GMT 02:47 2014 Monday ,17 November

Qatar Library to take part in Conference

GMT 18:17 2018 Friday ,07 September

US Defence Secretary arrives in Kabul

GMT 03:28 2018 Sunday ,21 January

Emirates throws Airbus A380 a lifeline

GMT 15:20 2017 Wednesday ,20 December

Oman Arab Bank launches advanced automation system

GMT 04:56 2017 Thursday ,22 June

ASEAN journalists conclude silk road media journey

GMT 08:08 2015 Thursday ,05 November

UAE media has matured, delivered remarkable successes

GMT 22:37 2016 Thursday ,17 November

Japan aims to increase food exports to GCC

GMT 08:40 2013 Saturday ,02 February

Saladin

GMT 00:12 2016 Sunday ,01 May

December 21 - January 18

GMT 05:35 2017 Wednesday ,25 October

Rio policeman who killed Spanish tourist charged

GMT 01:15 2014 Friday ,24 January

Little Known Facts

GMT 09:03 2013 Tuesday ,09 July

Fathy Abdel Wahab works on social issues drama

GMT 19:13 2017 Sunday ,16 April

Iraqi MP calls government to cut oil from Jordan

GMT 21:38 2017 Wednesday ,12 July

Israeli occupation forces arrest 21 Palestinians

GMT 04:59 2015 Wednesday ,28 October

Saudi blogger flogging to resume

GMT 14:24 2016 Wednesday ,14 December

Wonder Woman loses UN job after protests

GMT 14:28 2017 Saturday ,13 May

Tunisia can repay 53% of its debts
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday