You are here

IMF supports ECB proposal to raise provisions on bad loans

fa-imf-20171013.jpg
The International Monetary Fund strongly supports the European Central Bank's recent proposal to increase provision requirements for new non-performing loans, IMF European Department chief Poul Thomsen said on Friday.

[WASHINGTON] The International Monetary Fund strongly supports the European Central Bank's recent proposal to increase provision requirements for new non-performing loans, IMF European Department chief Poul Thomsen said on Friday.

The ECB recently proposed requiring lenders to increase loan loss provisions on newly classified non-performing, unsecured loans to 100 per cent over two years. For secured loans, provisions would need to rise to 100 per cent over seven years.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes