Banks, government launches measures on debt, deductibility … – Reuters Italy

       

(Reuters) – Green light for the government to decree containing measures to speed up the enforcement of collateral on loans and introducing a more favorable tax regime on losses from devaluation .

       

“With this measure not only recovers the confidence of international investors, but also many Italians, by simplifying procedures related to bankruptcy and enforcement procedures,” said the Prime Minister Matteo Renzi in a press conference at Palazzo Chigi with Minister of Economy, Pier Carlo Padoan.

       

Gross NPLs have touched in April share 191.5 billion, accounting for 10% of loans and a level not seen in 20 years, while non-performing loans total is above 350 billion euro.

       

The government believes that by helping banks to dispose of this baggage, even the supply of credit to households and businesses should gradually increase, supporting the ongoing recovery.

       

The decree “facilitates disincaglio of non-performing loans, while safeguarding the rights of creditors and the position of the borrowers in trouble,” said Padoan.

       

“There are measures that allow debtors a temporary phase of additional funding to continue operating. The creditors can take action to recover assets in the competitive situation,” he said.

       

Estimates compiled by the Ministry of Economy suggest that reduce to two years the average period of recovery may increase by 10% the value of the ‘non-performing loans’.

       

In addition, the Decree aligns the Italian law on write-downs to most European countries and thus also aims to rectify a possible infringement procedure by the European Dta, the deferred tax asset, which largely originated in the limit to tax deductibility of the adjustments.

       

“From now on the new rights lit by write-downs of loans, can be enjoyed in the year as they occur,” said Padoan. More …