Lehmann, Alexander, (2017), “Will better insolvency standards help Europe’s debt deleveraging?”, Bruegel, 23 January
Insolvency regimes in the euro area are on the whole costly, lengthy, and recover little value. A new directive proposed by the Commission sensibly aims to strengthen preventive restructuring and to give once-failed entrepreneurs a second chance. But to assist banks in their NPL workout judicial capacity will need to be built up, and regimes better tailored to SMEs will be necessary.
The ECB’s new guidelines on the management of non-performing loans (NPLs) will shine a spotlight on the way banks deal with NPLs. Both supervisors and market analysts will be scrutinising banks’ efforts to work out loan delinquency in enterprises and households.
- Ersal-Kiziler, Eylem, Nguyen, Ha., (2016), “Euro Currency Risk and the Geography of Debt Flows to Peripheral European Monetary Union Members”, Policy Research Working Paper;No. 7338. World Bank, June
- Ongena, Steven, Popov, Alexander, Van Horen, Neeltje, (2016), “The invisible hand of the government: “Moral suasion” during the European sovereign debt crisis”, European Central Bank, Working papers 1937, July