Without underestimating the risks associated with the latter exposures, it should be borne in mind that proactive management by the banks may make positive cash flows possible and permit a return to normal conditions. As regards managing bad loans, in several cases we have found shortcomings in banks’ organization and governance.
These must be resolved so that the banks can take full advantage of the opportunities that have opened up following the recent enactment of new laws to shorten recovery procedure times, potentially bringing them closer to those in the other main countries.