The EU Commission has published a communication setting out progress on the reduction of non-performing loans (NPLs) in Europe. In this report the Commission notes that while NPL ratios have been falling in almost all Member States, the situation differs significantly across Member States. It highlights recent developments across NPLs in the EU as a whole, and measures within individual Member States, and that progress implementing the Council's action plan remains on track. The communication also notes that the Commission will propose a comprehensive package of measures to reduce the level of existing NPLs and to prevent the build-up of NPLs in the future. The package will focus on four areas:

1. supervisory actions;
2. reform of restructuring, insolvency and debt recovery frameworks;
3. development of secondary markets for distressed assets; and
4. fostering restructuring of the banking system.

If you have any questions please contact Nicholas Smith