Decree Law 59/2016, converted into law at the end of June, contains new measures for reducing credit recovery times, following on from the measures adopted in 2015. It introduces new mechanisms to ensure more effective protection of entities that grant loans to firms, envisages information tools to assist participants in the non-performing loan (NPL) market and amends the regulations governing judicial recovery proceedings.
Overall, the new measures promote a more effective management of NPLs by banks. They will further reduce average NPL recovery times, positively impacting the value of these assets and the development of the NPL market. Taken as a whole, the measures will ultimately translate into better lending conditions and more opportunities for firms and households to obtain financing.