EU Prepared a Plan for Problematic Loans

EU Prepared a Plan for Problematic Loans The EU prepared a plan for problematic loans. The European Union Commission prepared a plan to reduce non-performing loans. The European Union (EU) Commission has prepared a plan that will allow banks to reduce their increasing problem loans due to the coronavirus outbreak. According to the plan, secondary markets for troubled assets will be expanded. In secondary markets, it will be ensured that banks' bad loans are not included in their balance sheets. An electronic data center for non-performing loans will be established to increase transparency to European Union markets. ECB will allow better sharing of data among borrowers, lenders, asset management companies, lenders and private bad lending platforms. Changes will be made in the EU's bankruptcy and debt collection legislation. Bankruptcies applied in different ways across the EU will be harmonized with each other. The European Union will support the establishment of national asset management companies and their cooperation. Citizens and businesses will be provided with access to the financing they will need during the crisis caused by the coronavirus epidemic. Problematic loans of banks in EU countries increased due to the effects of the coronavirus epidemic. The European Central Bank (ECB) has recorded about 1.4 trillion euros in bad loans in Europe.