Gross 100 bn euros of bad loans on Italian banks books may be worth just 25.3 bn euro by investors due to Italy’s long COurts procedures. Hera are figures by Cerved and La Scala law firm

That the value of non-performing corporate loans varies according to the timing of the closure of bankruptcy and property proceedings by the courts is nothing new. Investors are now used to pricing this variable when they bid for an NPL portfolio. But the news is that today we have a clear idea of ​​how much the differences in the time taken to manage procedures weigh on NPLs prices. Specific figures and calculations are made by business information group Cerved and La Scala law firm in their report "The duration of bankruptcies and real estate executions and impacts on NPLs". The result of the calculations is that the approximately 100 billion of gross bad loans, which were at the end of 2018 in the balance sheets of Italian bank