In addition to a strong private sector debt restructuring framework, banks will also have to step up their efforts to reduce their NPLs in other ways. For example, banks will have to further enhance their operational capacity to manage NPLs, and to become more alert in identifying prospective NPLs.
Addressing the high levels of NPLs needs to be embedded in a broad structural reform strategy, building on what has already been done under the programme. Regarding property markets, there is an urgent need for stepping up the reduction of the backlog of title deeds and streamlining their issuance process.