IMF favours ECB's proposal to raise provisions on bad loans
The ECB proposed requiring lenders to increase loan loss provisions on bad loans
 "IMF favours ECB's proposal to raise provisions on bad loans")
The International 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 ECB 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.