Banks plan to put €1 bn into the new NPL platform

Caixa Geral de Depósitos (CGD), BCP and Novo Banco, the three Portuguese banks that signed the memorandum to access the non-performing loans (NPLs) management platform, have already finished the list of processes to be transferred into this vehicle. The total of bad credit which will be jointly managed amounts to €1 billion.

The original story was released by economic newspaper “Jornal Económico”, wich quotes a source close to the process. According to the newspaper, the €1 bn are distributed almost «equally» between the three adherent banks.

This list comes a month after the banks had begun contacting their clients so that their non-performing loans can be jointly managed by the NPL management platform.

The memorandum to access the non-performing loans platform (“Plataforma de Gestão de Créditos Bancários”) was signed last September by CGD, BCP and Novo Banco. It aims to solve non-performing loans from these banks portfolio and shrink to a third the average period of recovery of these credits( to six months). But the platform works are, however, delayed. In September there was the expectation that by the end of the 1st quarter of 2018 the first results should be starting to be seen, but only now, after the conclusion of the credit lists to be manged by the platform, is that the work will start.

Original Story: Eco
Photograph: Depositphotos
Translation and Edition: Prime Yield

Portuguese NPL is still under the European Commission radar

For Valdis Dombrovckis, the European Comission (EU) Vice-President, the volumes of Non-Performing Loans (NPLs) in Portugal are a cause of concern. During an audition in the Portuguese National Assembly last Friday, the EU responsible showed his concern about the last data released by the European Central Bank which point to the NPL downsizing in Portugal still far from the European average. The NPL ratio in the Portuguese market fell from 17.9% in June 2016 to 15.5% in June 2017, in a correspondent decrease of about € 8 billion.

Speaking to the Portuguese Deputies, Dombrovckis warned that the Brussels sees «clear progress but the Portuguese NPL ratio is still well above the European average. That is why there is still work to be done in this area, given that the banking sector continues to be in risk».

According to the EU Commissioner, «during the last three years the NPL was reduced by 1/3 within the European Union, corresponding to about € 300 billion, and some of the countries that had high rates of NPL have substantially lowered that risk, making that the UE ratio stands now on the 4.4%».

Original Story: TSF Radio
Photograph: EPA/Stephanie Lecocq
Translation and Edition: Prime Yield