In the approach traditionally taken in Italy, NPLs can be divided into at least two large and very dissimilar categories based on the degree of difficulty faced by debtors: of the € billion worth of gross NPLs outstanding at the end of 2015, bad loans accounted for € billion; € billion were in loans classified as “unlikely to be repaid”, past-due or in breach of overdraft ceilings.
Inflation expectations for the euro area over the medium to long term continue to be firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2%. Regarding the medium-term outlook for prices and growth, the information and analysis now available fully confirm our decision to maintain an accommodative monetary policy stance for as long as necessary.