Anyway, this time the effects of the financial crisis are more likely to be transmitted through the trade channel rather than the financial channel (which historically affected the most Latin America).
On their part, banks need to pursue a more active policy for NPE management, by promoting long-term solutions and multi-creditor workouts, as well as focusing on the restructuring of viable businesses. These lines of action, coupled with the economy’s path out of the recession and back to growth, should bring about a stabilization and, subsequently, a decline in the NPE ratio.