EU steps up efforts to deal with bad debts of more than one trillion euros

Brussels

EUROPEAN Union leaders are stepping up efforts to deal with the more than one trillion euros (S$1.49 trillion) in non-performing debt weighing down the bloc's lenders.

The Maltese government, which holds the rotating presidency of the EU, called for action to prevent the issue from threatening financial stability and hurting economic growth, according to a note that was circulated ahead of a finance ministers' meeting in Valletta this week. Valdis Dombrovskis, the European commissioner in charge of financial services, said in a separate letter to the presidency that his office will help coordinate a European strategy on non-performing loans among the 28 member states.