Banks think on how to deal with “Red loans”

Bankers have reached an informal gentleman’s agreement

The ticking “bomb” of “red loans” is attempted to be defused by banks, in order to cope with ECB stress tests.

Especially in real estate, where 22 bn out of 71bn are past due, information from Realnews newspaper stated that bankers have come to an informal gentleman’s agreement “in order for nobody to lose their home and so portfolios are not massively sold to foreign distress funds”.