It is clear that, in some countries, the large stock of non-performing loans (NPLs) is still preventing a stronger recovery in credit. All this explains why facilitating a work-out of NPLs has to be part of the package of policy actions to restore productive investment. The ongoing work towards a Capital Market Union (CMU) is an opportunity to accelerate progress also on this front.
[Updated 29 May 2023]  1 For these estimates, see ECB (2023), "Fiscal policy and high inflation", ECB  Economic Bulletin, Issue 2/2023. 2 See https://economy-finance.ec.europa.eu/system/files/2022-11  /com_2022_583_1_en.pdf. 4/4  BIS - Central bankers' speeches