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IMF favours ECB's proposal to raise provisions on bad loans

The ECB proposed requiring lenders to increase loan loss provisions on bad loans

Reuters  |  Washington 

Visitors are silhouetted against the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo. (Photo: Reuters)
Visitors are silhouetted against the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo. (Photo: Reuters)

The Monetary Fund strongly supports the European Central Bank's recent proposal to increase provision requirements for new non-performing loans, IMF European Department chief Poul Thomsen said on Friday.

The recently proposed requiring lenders to increase loan loss provisions on newly classified non-performing, unsecured loans to 100 percent over two years. For secured loans, provisions would need to rise to 100 percent over seven years.

 

 

First Published: Fri, October 13 2017. 19:48 IST
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