The Central Bank wants to be sure that there is sufficient clarity about the arrangement, for example in regard to the treatment of the borrower’s liability for the shortfall in a loan following an assisted sale or repossession, or for the warehoused part of a split mortgage.
The economic situation in the euro area remains difficult and confidence in the overall economic prospects is fragile and easily disrupted, feeding into low investment, Mr Draghi said. In this context, the inflation situation in the euro area has also become increasingly challenging.