These two categories of NPLs obviously have different requirements in terms of coverage and write-downs. Both types of loans must be booked in the balance sheets with due prudence, but not at values corresponding to their immediate liquidation.
Loans in the second category may return to the performing loans category; indeed, a significant number did so, even in the extremely difficult conditions of recent years. These loans represent “active” credit relationships; it is very likely that even if they experience a particularly difficult phase, debtors will be able to turn a corner and resume the payment of their debts.