Persistently high non-performing exposures (NPLs) in several European countries pose significant challenges to financial stability and are likely weighing on credit growth and economic activity. This paper, which summarizes a detailed IMF analysis (IMF SDN/15/19), examines the structural obstacles that discourage European banks from addressing their problem loans. It argues that a comprehensive approach comprising […]
Dmitriy Kovtun is a Senior Economist at the Western Hemisphere Department of the IMF. After joining the IMF in 2004, he worked in the African, Strategy and Policy Review, European and, currently, Western Hemisphere Departments. He holds a PhD in Economics from the University of Kentucky (Lexington).