It also built upon work conducted in a similar exercise by the International Monetary Fund (IMF) in the first half of 2015. The stocktake provides information on the impediments to NPL resolution within several Member States.
For example, banks are seldom encouraged to implement a write-off policy because of either country-related external impediments such as legal and tax issues, or idiosyncratic impediments linked to institutions’ governance. Tax deductibility of losses arising from write-offs is, in many countries, bound by strict constraints aimed at ensuring the definitive extinction of all legal claims against the debtor.