The Italian government is pushing a new draft law regarding bad loans. If passed, it could halt investment in the sector, affect the ability of banks to grant new loans and send shockwaves across the national non-performing loans (NPL) market.
Under the new proposal, first put forward by prime minister Giorgia Meloni’s Fratelli d’Italia party at the end of last year, eligible individuals and small and medium-sized businesses that have defaulted on their loans would be able to repurchase their debt and potentially bring their businesses back to work.