ROME- The idea of private investors participating in state-owned companies in Europe managing non-performing loans (NPLs) could be looked upon favourably, European Central Bank Governing Council member Ignazio Visco said on Thursday.
Visco, who is also the governor of the Bank of Italy, said banks needed to continue managing NPLs effectively, so their balance sheets are not compromised in the aftermath of the COVID-19 crisis.
"In Europe there is a discussion around initiatives aimed at setting up or improving the functioning of special purpose vehicles focused on the management of NPLs," he told a webcast event in Rome. "Proposals that also include the possibility of private investors participating in the capital of these companies could be looked upon favourably."
(Reporting by Stefano Bernabei, writing by Agnieszka Flak; editing by Valentina Za) ((firstname.lastname@example.org; +39 02 6612 9450; Reuters Messaging: email@example.com))