For that, the structure of incentives would have to be changed, so that both borrowers and lenders have a common interest in finding a pragmatic solution to the debt problem. The data tell us that this is not happening. Conversely, non-performing loan levels are continuing to increase. The reform of the foreclosure process is part of the change that has to come about.
In this respect, I welcome the Supreme Court decision on the unconstitutionality of the four Parliamentary bills concerning the foreclosure law. This will help to contribute to the reduction of non-performing loans in the banking system and recreate margins of manoeuvre for banks to extend loans to profitable projects supporting the recovery. BIS central bankers’ speeches  1  5.